Middle Eastern Investors Starting to See Value in US Real Estate
Los Angeles – Tuesday, November22, 2011 – The real estate arm of the Bahrain-based investment company, Investcorp, recently announced its three most recent equity investments in the US real estate market. This brings Investcorp’s real estate investment this year to $300 million and demonstrates the firm’s confidence in the US real estate market.
Investcorp has just closed on its purchase of the seven-story Park Tower office complex in Long Beach, California for an undisclosed price. The deal gives Investcorp a Class A office tower in a major coastal metropolitan area. Park Tower closely follows Investcorp's $37 million acquisition of the Bethesda Health City building in Boynton Beach, Florida. Both properties offer strong "going in" cash yields and enjoy high quality existing tenancy underpinned by the business and residential communities in Greater Los Angeles and the corridor between West Palm Beach and Ft. Lauderdale.
"These two properties complement our growing mix of investments selected for their strong and stable tenant histories, ties to growing metropolitan communities, and above-market cash yields," said Herb Myers, a managing director in Investcorp's real estate group. "We believe they will provide our investors with yields that look especially attractive given the forecasted period of low interest rates and economic conditions we face today."
Middle Eastern investors have long been an active participant in the US real estate market. Since 2008, however, most investors have reduced or eliminated their exposure to US real estate. With property values reaching historic lows, investors from the Gulf Cooperation Council (GCC) are taking a second look at the promise of US real estate. Assets in the US have had a substantial price correction and returns are now at such high levels that many GCC investors are taking a second look at investing in the US.
Khalid Al Rumaihi, Managing Director at Investcorp and regional head for United Arab Emirates, said: "Despite the difficult economic conditions, Investcorp continues to secure investments with potential outperforming returns driven by its focus on strong fundamentals and concrete knowledge of the US real estate market. These three Shariah compliant US properties form a great addition to the mix of investments in our real estate portfolio given their solid and stable tenancy record and excellent locations within urban communities."
To find out if our real estate investment strategies are right for you, please contact us by email at info@floyd-associates.com or by phone at +1 (310) 300-0890.
To read more about Floyd Associates please visit www.floyd-associates.com.
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4 comments:
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