Bahrain Group purchases an American commercial portfolio

A $250 million portfolio of office and retail buildings across the United States has been acquired by Investcorp Bank BSC.

The deal adds 1.6 million square feet to the portfolio of the Bahrain-based investment company, which is operating through its U.S. subsidiary and has an occupancy rate of roughly 92 percent, according to the company. There was no mention of the seller.

The locations of the properties are in the metropolitan areas of Chicago, Los Angeles, Minneapolis, and New York. They consist of two office buildings in Evanston, Illinois, close to Northwestern University; a 25-acre shopping center in California; a two-tower office complex in Minneapolis; and three office buildings in Long Island.

Herb Myers, managing director of Investcorp’s real estate group, stated in the announcement that “our approach is to invest in assets that we believe will provide attractive yields soon after they are acquired.” We think these properties also give them a chance to enhance their operating and leasing performance over a longer time frame.

Investcorp has acquired more than 200 properties totaling $10 billion since 2005. Property and debt funds totaling more than $4 billion are being managed by the company.