Investcorp, a leading global provider and manager of alternative investment products, today announced that its U.S.-based real estate arm has invested in two office buildings in New York City's garment district, 229 West 36th Street and 256 West 38th Street, for a total purchase price of approximately $156 million.
"We are excited to announce our investment into the Manhattan market, as expanding our real estate portfolio in the U.S. is a key component of our firm's overall growth strategy," said Mohammed Alardhi, Executive Chairman of Investcorp. "As one of the largest foreign investors in U.S. real estate, we have invested over $2 billion in the last 18 months and will continue to focus on uncovering opportunities in gateway cities across the country."
229 West 36th Street and 256 West 38th Street are office buildings in Midtown Manhattan. Centrally located, the properties offer easy access to the city's primary transportation hubs and are positioned to benefit from the transformation of Manhattan's West Side. The properties are fully leased to a diverse roster of over 20 long-term tenants and total approximately 267,000 square feet. Consistent with Investcorp's investment approach, both properties maintain strong cash flows, proven operating histories, and high occupancy rates.
"These centrally located properties are well-positioned to benefit over the long term from the development activity around Hudson Yards, Manhattan West, Penn Station, and Moynihan Station while providing stable, in-place cash flows to our investors," said Brian Kelley, Managing Director in Real Estate Investment at Investcorp. "We are excited to enter into our third partnership with Brickman, as we believe their investment and management capabilities will unlock immediate value in each of the properties."
As part of the transaction, Investcorp has entered into a joint venture with Brickman, a New York-based owner-operator with a proven track record in the New York real estate market. Brickman maintains a joint-venture investment in the properties and will serve as the leasing and management agent.
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 US, 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.