Bahrain – Investcorp, a leading global provider and manager of alternative investment products, released a market update report on North America real estate. The report analyzes the recent performance of various property types following the impact of the COVID-19 pandemic and discusses potential outcomes looking ahead to recovery.
Khulood Ebrahim, Real Estate Product Specialist at Investcorp commented, “At Investcorp, we remain focused on continuing to identify attractive investment opportunities where we see the most value and intend to take advantage of the short-term windows, and our early recognition of resilient property types primarily industrial and multifamily has allowed us to operate from a position of strength throughout the pandemic.”
Key insights highlighted in the report, include:
- A number of key themes have influenced the divergence in property type performance, including shifting demographics.
- Millennials now comprise the largest generation in the US labor force and their behaviors are having a distinct effect on society and real estate, from e-commerce to changing workplace preferences and the integration of technology. COVID-19 has accelerated many of these trends.
- Industrial and multifamily real estate have delivered exceptional performance over the last decade and Investcorp expects this trend to continue given the strong fundamentals in these sectors.
- E-commerce helped the industrial market recover from the Global Financial Crisis. It has been the most sought-after property type in recent years and this is expected to continue in the post-COVID recovery.
- As seen since the onset of the pandemic and demonstrated in past cycles, the Multifamily sector is typically viewed as recession resilient and relatively safe. Millennials have been one of the main drivers of the increased multifamily renting lifestyle as they continue to focus on liquidity and mobility, partly due to increasing student debt, and changing lifestyle dynamics.
- Other real estate property types including retail, hospitality and office have underperformed and their future prospects remain uncertain given the challenges stemming from the pandemic.
Investcorp has a long history of successfully investing in real estate across multiple market cycles, having acquired more than 850 properties with a combined value of more than US $20 billion since 1996. The real estate team is comprised of approximately 30 investment professionals and the senior leadership team has an average of more than 25 years of industry experience. In 2014, Investcorp narrowed its strategic focus to target what it believes to be the most resilient sectors of real estate, residential and industrial, which currently represent 90% of the firm’s US real estate portfolio.
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About Investcorp
Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.
We invest a meaningful portion of our own capital in products we offer to our clients, ensuring that our interests are aligned with our stakeholders, including the communities that we operate within, towards driving sustainable value creation. We take pride in partnering with our clients to deliver tailored solutions for their needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach.
Investcorp today has a presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore. As of December 31, 2020, Investcorp Group had US $35 billion in total AUM, including assets managed by third party managers, and employed approximately 430 people from 43 nationalities globally across its offices. For further information, visit www.investcorp.com and follow us @Investcorp on LinkedIn, Twitter and Instagram.
Media Contacts:
Investcorp
Nada Abdulghani
+973 17515467
nabdulghani@investcorp.com
© Press Release 2021
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