| 09 Jun 2009 |
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Investcorp Makes Investments in Commercial Real Estate Debt
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Historic investment opportunity created by combination of availability of strong assets at favourable prices and the scarcity of debt capital
, the asset management firm specialising in alternative investments, announced today that its real estate team has completed a series of transactions to acquire a senior mortgage loan, a B-Note for a senior mortgage and two mezzanine loans, all secured by commercial property assets, located in the United States, that are performing well. The loans, with a face value of approximately $170.9 million, were purchased by InvestcorpInvestcorp at a discounted rate. Details of the transaction were not disclosed.Mazin Al Khatib, Managing Director and head of InvestcorpInvestcorp's placement business in the United Arab Emirates and Saudi Arabia said: "This opportunity to invest, at favourable prices, in sound US commercial real estate assets exists now for two reasons. The difficult economic environment is forcing sales. Overleveraged buyers are being forced to recapitalize, and lenders, who need to liquidate to address balance sheet issues, are being forced to sell outright. At the same time, dislocation in the capital markets has made mortgage debt scarce, so other forms of debt capital are needed to fill the gap. It is an historic investment opportunity created by this combination of the availability of strong assets and the scarcity of debt capital.
"At this time of transition, InvestcorpInvestcorp has a powerful position in the US real estate debt business. Our team there has strong buying capacity and relevant expertise, plus industry relationships built over 30 years in US real estate."
InvestcorpInvestcorp
completed these transactions with capital from its Investcorp Real Estate Credit Fund, L.P., a vehicle formed in September 2008, and from its $108 million Mezzanine Fund I, formed in 2006, which is now fully deployed. Both Funds acquire high-quality mortgage loans, mezzanine loans, and commercial mortgage-backed securities (CMBS) from distressed lenders as well as originating mortgage and mezzanine debt to satisfy lack of capital.The senior mortgage loan was secured by an office headquarters building located in Washington, D.C. The two mezzanine loans were secured by Class A office buildings in New York and Los Angeles, and were acquired from a private investor. The B-Note of a senior mortgage was secured by four self-storage facilities located in the boroughs of New York, and was purchased from a major commercial bank.
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About Investcorp
InvestcorpInvestcorp
is a leading provider and manager of alternative investment products. It has offices in Bahrain, London and New York and is publicly traded on the Bahrain Stock Exchange (INVCORP) and the London Stock Exchange (IVC). InvestcorpInvestcorp has five lines of business: private equity, hedge funds, real estate, technology investment and Gulf Growth Capital. Founded in 1982, InvestcorpInvestcorp has grown to become one of the largest and most diverse alternative investment managers in terms of both product offerings and geography. As of December 31, 2008, InvestcorpInvestcorp had more than $13 billion in invested assets under management (AuM). Further information is available at www.investcorp.com.Media enquiries
InvestcorpInvestcorp (Bahrain)
Firas El Amine
+973 3998 7838
Brunswick Gulf Ltd
Jeehan Balfaqaih / Summer Said
+971 4 365 8260
© Press Release 2009
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