Bahrain's Investcorp acquires stake in US property

Investcorp Bank on Monday said it has acquired a stake in a Houston apartment complex as the Bahrain-based alternative investment firm expands its US real estate holdings. The four adjacent properties comprise 1,076 homes in the Copperfield community of northwest Houston, Investcorp said in an e-mailed statement. The bank gained the stake through a recapitalisation with current owner MHP Investments, which will retain an interest in the portfolio, it said. Investcorp used 10-year, fixed-rate financing for the transaction, it said without giving a value. The company, which manages $1.2bn of real-estate assets, plans to spend $250m this year to buy properties in the US for its Gulf clients, Jonathan Dracos, head of real estate of Investcorp, said on February 26. The bank, which invests in companies and hedge funds as well as real estate, had $11.6bon of assets under management at the end of December. The real-estate division is focusing on buying apartments to take advantage of lower home ownership and growing preference for rentals in the US, Dracos said. The company is also buying offices close to hospitals.