Investcorp Capital expands presence in US housing market

Bahrain’s Investcorp Capital has invested $200 million in US senior housing and multifamily properties.

The alternative investment company is betting on strong demand and constrained new supply in the sector.

The combined portfolio includes a 148-unit and a 116-unit senior living property in California and New York, as well as a 199-unit multifamily community in New Jersey, its first direct multifamily property acquisition in the US.

A multifamily asset is a residential real estate comprising multiple separate housing units within one building or complex.

The purchase of the senior living assets follows its recent acquisition of a 140-unit senior living community in Boston, Massachusetts, the company said in a statement to the Abu Dhabi Securities Exchange on Tuesday.

Demand for high-quality senior living is surging as seniors become the fastest-growing demographic in the US.

The 80-plus population is expected to increase by more than 70 percent by 2035 and more than double by 2045, according to the US Census Bureau. 

Jonathan Dracos, chief investment officer of Investcorp Capital, said the company is now seeing more attractive entry points, particularly in sectors where fundamentals remain intact, but pricing has adjusted.

“In multifamily, this means targeting well-located assets with strong in-place income and the ability to drive growth.”

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The company intends to increase investments in senior housing over the next three years, the statement said without giving specific figures.

Investcorp Capital shares closed at AED1.45 on Monday, up nearly 4 percent so far this year.

Investcorp owns 71 percent of the company.