Middle East investors jump into Austin real estate market
Nov 27, 2013
Austin Business Journal
Investcorp, a subsidiary of Investcorp Bank BSC of the Middle Eastern country of Bahrain, has claimed a stake in Austin real estate.
The company, which purchases assets on behalf of high net worth individuals and institutions in Bahrain, Kuwait, Qatar, Saudi Arabia, Oman and the United Arab Emirates, has bought the University Village and University Estates apartments on Crossing Place in Southeast Austin. The communities are largely populated by students.
Though the price was not disclosed for the collective 846 units, the Travis Central Appraisal District values University Village at $36.1 million and University Estates at $28 million.
The seller was not disclosed in a news release outlining the transaction, but according to county records, the owner entities were both formed by The Preiss Co. of Raleigh, N.C.
In addition to the Austin acquisitions, Investcorp purchased multifamily properties in greater Chicago and Las Vegas. The company statement said the aggregate investment for the transactions was $270 million. The 3,000 purchased units have an average occupancy rate of 95 percent, officials said.
"These recent residential acquisitions are consistent with our strategy of targeting high quality assets with what we believe are attractive yields and the potential for near- and long-term upside through operating improvements and renovations," said Christopher Hoeffel, managing director in Investcorp's real estate group.