Investcorp Grows Residential Real Estate Portfolio with $350 Million Investment in Florida and Arizona

9/25/17

Investcorp, a leading provider and manager of alternative investment products, today announced that its U.S.-based real estate arm has invested in six multifamily properties in Florida and Arizona, for a total purchase price of approximately $350 million. The properties are located in key growth markets with strong fundamentals in the multifamily space.

Herb Myers, Managing Director Real Estate Investment at Investcorp, said: "Our commitment to U.S. residential real estate continues to serve our clients well. Underscoring our confidence in the U.S. real estate market and economy, over the past 18 months, we have invested in real estate transactions valued at more than $1.8 billion. As we continue to focus on the firm's growth, real estate investing will play an important role. The U.S. multifamily market remains attractive for new investment opportunities. This recently acquired portfolio builds upon our strong track record of investing in multifamily properties in growth markets over the past several years and their ability to deliver consistent yields in a yield-constrained global environment."

Highpoint Club and Montevista at Windermere are two apartment communities, which combined have 708 units. These properties are located within two different submarkets of the Orlando, Floridametropolitan area, a market that is expected to see population, employment, and GMP growth rates among the top five in the U.S. over the next five years. According to the U.S. Department of Labor, the Orlando metropolitan area was one of three metropolitan areas to experience the highest year-over-year percentage increase in employment in the country, at 3.2 percent as of August 2017. The Orlandomultifamily market has benefited from a low vacancy rate and solid rental rate growth over the past several years, and these trends are expected to continue.

Aqua Deerwood is a 616-unit, garden-style, apartment complex located within the dense, high-income Southside/Bay Meadows submarket of Jacksonville, Florida. This location has seen strong growth due to its proximity to employment hubs as well as entertainment and higher education. The apartment complex is across the street from Deerwood Office Park, which houses a large concentration of companies, including Florida Blue, Merrill Lynch, United Healthcare, and Fidelity Bank. Also boosting the area's population growth are underlying fundamentals such as no state income tax, a low cost of living, and favorable climate. Jacksonville is the fourth largest metropolitan area in the state and the tenth for population growth in the entire country

Arcadia Cove, Tuscany Palms and Midtown on Main are three, for-rent multifamily properties located in infill locations in the Phoenix metropolitan area. Combined, these properties have 1,486 units. Phoenixremains a high growth market, with growth fueled by an affordable cost of living, high-quality transportation infrastructure, and a business friendly environment. Over the past few years, the Phoenix-Mesa-Scottsdale metropolitan area has ranked third in the U.S. for employment growth and number one in population growth. In the past year, financial employment has expanded with the addition of 10,400 jobs, while the professional and business services sector added 9,400 jobs. The region is projected to experience some of the highest rental rate growth in the country over the next five years, particularly as population, employment and household growth outpace new units of supply.

About Investcorp

Investcorp is a leading global provider and manager of alternative investments, offering such investments to its high-net-worth private and institutional clients on a global basis. Led by a new vision, Investcorp has embarked on an ambitious, albeit prudent, growth strategy. The Firm continues to focus on generating investor and shareholder value through a disciplined investment approach in four lines of business: corporate investment, real estate, alternative investment solutions and credit management.

As at June 30, 2017, the Investcorp Group had $21.3 billion in total AUM, including assets managed by third party managers and assets subject to a non-discretionary advisory mandate where Investcorp receives fees calculated on the basis of AUM.

Since its inception in 1982, Investcorp has made over 170 corporate investments in the U.S., Europe and the Middle East and North Africa region, including Turkey, across a range of sectors including retail and consumer products, technology, business services and industrials, and more than 450 commercial and residential real estate investments in the U.S., for in excess of $55 billion in transaction value.

Investcorp employs approximately 390 people across its offices in Bahrain, New York, London, Abu Dhabi, Riyadh, Doha, and Singapore. It is publicly traded on the Bahrain Bourse (INVCORP). For further information, including our most recent periodic financial statements, which details our assets under management, please visit: www.investcorp.com.

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