Investcorp acquires $250m worth of properties in US

Muscat: Investcorp, a global provider and manager of alternative investment products, on Wednesday announced that its United States-based real estate arm has acquired a diverse portfolio of real estate properties in the Boston and Denver metropolitan areas, for a purchase price of $250 million.
The five investments include 20 buildings and 1.8 million square feet of office, industrial, flex and laboratory space, highlighting Investcorp’s strategy to invest in strong, cash-flowing properties throughout key US markets.
The investments benefit from a continually improving employment environment. The purchases of the five investments were well below replacement costs and have an average occupancy rate of 94 per cent. They were acquired with different local partners who have established track records in their respective sectors and markets.
“Investcorp has an established track-record of successful investments in the US real estate market. With these new acquisitions, our growing portfolio currently includes a wide range of well-occupied properties in prime metropolitan locations across the country. We look forward to deploying our expertise and capabilities in our effort to enhance the value of these properties through quality upgrades and accretive leasing,” said Harsh Shethia, managing director at Investcorp in Oman.
Boston is the tenth largest metropolitan area in the US with an unemployment rate of 3.5 per cent, well below the national rate of 5 per cent. Boston Metro Industrial, a 900,000 square feet, four building industrial portfolio, is 95 per cent occupied. The industrial market in Boston has been fueled by robust demand for real estate due to growth in the e-commerce field.
The second Boston acquisition, Blackstone Science Square, is a 99 per cent leased 76,038 square feet office/lab property in Cambridge, Massachusetts, leased primarily to tenants in the life-sciences industry. Located between Harvard and MIT, Cambridge is home to over 300 life science and technology companies, representing the largest concentration of life science firms in the US.
Denver, the 21st largest metropolitan area in the US, is consistently ranked as one of the fastest growing cities in the country with the population expected to increase to over 3.5 million residents by 2020. In 2015, Forbes rated Denver as one of the best places in the country for businesses and careers. This is highlighted by Denver’s current below-average unemployment rate of 3.2 per cent.
Investcorp has acquired several office properties in the Denver area, including Centerpoint I & II, a 370,000 square feet office complex in Denver’s Midtown submarket. The Firm has also acquired Arapahoe Business Park and 345 Inverness, a portfolio of 10 office/flex properties comprised of 485,000 square feet and located in Centennial and Englewood.