Wednesday 08, November 2017 by Jessica Combes

Investcorp expands US real estate portfolio with Manhattan investments


Investcorp has announced that its US-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.

Both 229 West 36th Street and 256 West 38th Street are office buildings in Midtown Manhattan, centrally located and offering easy access to the city’s primary transportation hubs. The buildings 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 24,805 square metres. Consistent with Investcorp’s investment approach, both properties maintain strong cash flows, proven operating histories, and high occupancy rates.

"We are excited to announce our investment in the Manhattan market, as expanding our real estate portfolio in the US is a key component of our firm’s overall growth strategy. As one of the largest foreign investors in US 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,” said Mohammed Alardhi, Executive Chairman of Investcorp.

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.

“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,” said Mohammed Al-Shroogi, Co-CEO at Investcorp.