Bahrain-based Investcorp announced that it has acquired a portfolio of real estate properties in the US worth around $250m.
The acquisition, carried out by its US-based real estate arm, includes 20 buildings and 1.8 million square feet of office, industrial, flex and laboratory space in the Boston and Denver metropolitan areas.
The five investments were acquired with different local partners.
“The purchases of the five investments were well below replacement costs and have an average occupancy rate of 94 per cent,” Investcorp said in a statement.
Its acquisitions include the Boston Metro Industrial, a 900,000 square foot, four building industrial portfolio, which is 95 per cent occupied. A second Boston acquisition, Blackstone Science Square, is a 99 per cent leased 76,038 square foot office/lab property in Cambridge, leased primarily to tenants in the life-sciences industry.
Investcorp has also acquired several office properties in the Denver area, including Centerpoint I & II, a 370,000 square foot office complex. It has also purchased Arapahoe Business Park and 345 Inverness, a portfolio of 10 office/flex properties comprised of 485,000 square feet – located in Colorado.
“Boston and Denver are highly desirable markets whose strong economies make them appealing locations for investments,” said Mohammed Al-Shroogi, Co-CEO at Investcorp.
“The acquisition of these properties is in line with our strategy of acquiring well-occupied cash flowing properties in metropolitan areas with strong growth fundamentals. These investments have long weighted average lease terms, and we believe there is upside potential through our plan to implement property upgrades and accretive leasing.”
Fahad Murad, managing director at Investcorp in Bahrain added: “With a strong base of tenants and supportive local market dynamics, these properties are great additions to our US real estate portfolio. We expect to continue to invest in US real estate.”
In September, Investcorp acquired an office building called 901 Fifth Avenue in Seattle for approximately $223.5m. The 41-story, 540,589 square foot, multi-tenanted office building is located in Seattle’s central business district.
In February, Investcorp also acquired 733 Tenth Street, a Class A office building in Washington DC for approximately $180m.
Earlier this month, the company said it expects to reach its target of $25bn for assets under management by next year.