Abu Dhabi-listed Investcorp Capital spends over $300M to buy student housing in the US
Investcorp Capital, a company based in Abu Dhabi, has spent over $300 million to buy four student housing properties in the US. These properties have more than 2,500 beds, the company said on Tuesday.
US Real Estate Investments
Investcorp Capital has bought several student housing properties in the US. These include:
- A 792-bed building at Texas A&M University, which is 99% full.
- A 486-bed property at Texas State University, which is 98% full.
- A 699-bed property at the University of Kentucky, which is 96% full.
- A 684-bed property at the University of Oklahoma, which is 99% full.
This follows Investcorp Capital’s earlier $160 million investment in student housing at the University of Florida and the University of Texas at Austin. The company focuses on high-performing sectors and aims to provide strong semi-annual dividends, with a target of at least 8% per year, according to a statement on the Abu Dhabi Exchange (ADX).
Investcorp, the parent company of Investcorp Capital, is based in Bahrain and ranks second on Forbes Middle East’s Top 30 Asset Managers 2024 list.
Key Quote
“With over 22 million college students in the US, there is strong demand for off-campus housing. Many top universities cannot meet this demand. Increasing student numbers and stable rent prices make this a great market for long-term investment,” said Investcorp Capital CEO Tim Mattar.
Future Plans
In January, Investcorp Vice Chairman and Chief Investment Officer Rishi Kapoor said the company might go public within the next three to five years. This would allow time for the company to grow.
Kapoor, speaking at the World Economic Forum in Davos, said the listing could happen in London or New York. Investcorp already went public in Abu Dhabi in November 2023, raising $450 million by selling 32.9% of its shares.
Financial Performance
Investcorp Capital’s net profit for the year dropped by 7.1% to $105 million. However, its total operating income grew to $132 million for the year ending June 2024, up from $126 million the year before.
In March 2024, the company secured an $800 million credit facility with a group of international banks.
Published: 19th February 2025
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