Investcorp, the global investment group, has launched a new real estate investment portfolio, US Retail Properties IV, that offers clients the opportunity to invest in the fast-growing retail markets of Houston, Dallas, and San Antonio, Texas, USA.
The 29 properties, which cover 2.8 million square feet, are valued at $388 million. The portfolio has over 500 diversified tenants, including a number of institutional quality occupiers on long-term leases. Their combined occupancy rate is 93%. Major tenants include The Kroger Company and T.J. Maxx. A projected 9% net average investor cash yield is expected in addition to prospects for capital gain on exit.
Investcorp’s Chief Operating Officer, Gary Long, said: “Retail properties, such as those in this portfolio, that are well-established in key locations in fast-growing metropolitan markets and have multiple tenants and strong operating histories, have delivered robust returns to our investors. We are confident that the strategic location of these retail properties and the diversified nature of the portfolio, reinforced by the experience and expertise Investcorp will bring to bear, will generate strong returns.”
Investcorp’s New York-based team of real estate professionals invests in all major real estate asset classes with risk/return profiles ranging from core plus to opportunistic, for mid- to long-term holding periods. The team oversees a portfolio with a current value of approximately $2.8 billion in selected urban and suburban markets in the U.S. Over the past decade, Investcorp has acquired real estate with an initial capitalization of approximately $5.4 billion. In 2005, Investcorp was the fifth largest foreign institutional investor in the US real estate market.
Investcorp is a global investment group with offices in the Kingdom of Bahrain, London and New York. In addition to investing in real estate, Investcorp focuses on corporate investments, asset management and technology investments. Established in 1982, it now manages total investments in alternative assets of approximately $9.5 billion.