Investcorp Capital Divests $550 Million in US Multifamily Properties Amid Market Adjustments
Investcorp Capital, the Abu Dhabi Securities Exchange-listed alternative investment firm, has concluded the sale of 12 multifamily residential properties across five US states for approximately $550 million. The transactions, executed over several months beginning in 2024, encompassed the complete liquidation of a multifamily portfolio.
Despite prevailing challenges in the US housing market, including elevated mortgage rates and economic uncertainties, the firm reported securing the exits at a premium. This outcome underscores the resilience of the underlying assets and Investcorp's adeptness in navigating complex investment landscapes.
The divested properties, averaging a 94% occupancy rate, are situated in key rental markets such as Atlanta, Philadelphia, Raleigh, St. Louis, Tampa, and Orlando. Notably, the final transaction involved the sale of a 432-unit garden-style apartment community in Atlanta, completed at the end of February 2025.
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Interim CEO Mohamed Aamer highlighted the enduring appeal of the multifamily sector, stating, 'Though rent growth has cooled from the highs we saw in recent years, the long-term fundamentals supporting the multifamily sector remain compelling.' He emphasized the firm's commitment to identifying opportunities that deliver value to shareholders.
Investcorp Capital's strategic focus on real estate is evident, with nearly 98% of its portfolio comprising industrial or residential properties. According to Real Capital Analytics, the firm ranks among the top five cross-border buyers of US real estate over the past five years.
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