-- $60 Million in New Acquisitions Brings Investcorp's 2002 Real Estate Investment Total to Approximately $750 Million, a Record for the Firm --
-- New Sales Increase Firm's Total Realizations in 2002 to Approximately $315 Million --
NEW YORK, January 7, 2003 -- Investcorp, a global investment group, today announced it has acquired The Fountains at Waterford Lakes in Orlando, Florida, and Monthaven Park Apartments in Nashville, Tennessee, for a combined purchase price of approximately $60 million. The firm also announced that it has sold four properties -- East Town Plaza in Madison, Wisconsin, Milano Apartments in Houston, Texas, Catalina Shopping Center in Boynton Beach, Florida and St. John's Plantation Apartments in Jacksonville, Florida -- for a combined value of $88.5 million.
$60 MILLION FOR ORLANDO AND NASHVILLE MULTI-FAMILY PROPERTIES
Investcorp acquired The Fountains at Waterford Lakes and Monthaven Park Apartments on December 27, 2002 from affiliates of Archstone Communities Trust, which will continue to act as property manager for both properties. The Fountains at Waterford Lakes is a 400-unit, garden-style apartment complex, which was built in 1999 and 2000 by affiliates of Archstone. The Property consists of 17 three-story residential buildings plus an office/clubhouse which are situated on 22.36 acres in the eastern suburbs of Orlando, Florida. Occupancy at the property is currently 97%. Monthaven Park Apartments is a 456-unit, garden-style apartment project, which was built in two phases in 1998 and 2001 by Archstone. The Property consists of 19 two- and three-story residential buildings, plus two office/clubhouse buildings, and is situated on 31.56 acres in the northern suburbs of Nashville, Tennessee. Occupancy at Monthaven Park is currently 92%.
The acquisition of these two properties brings Investcorp's total 2002 investments to approximately $750 million, a record for the firm. "Although Investcorp has recently focused on acquiring office and industrial properties, the excellent locations of these multi-family properties, combined with Archstone's proven property management skills, make these properties especially attractive," commented F. Jonathan Dracos, a member of Investcorp's Management Committee.
$88.5 MILLION IN SALES OF FOUR PROPERTIES
East Town Plaza was sold by Investcorp to Ramco-Gershenson Properties Trust on December 23, 2002. The property, a 208,959 square foot community shopping center located in Madison, Wisconsin, was acquired by Investcorp in co-investment with Ramco-Gershenson in April 2000. The property is 96% leased and anchor tenants include Borders Books, Burlington Coat Factory and Marshalls.
Milano Apartments was sold by Investcorp on December 31, 2002 to an affiliate of the England Group. The property, which Investcorp had acquired in February 1999, is a 330-unit, Class-A apartment complex located in the Westchase submarket of Houston, Texas. At the time of sale, the property was 95% occupied. Investcorp was represented exclusively in this transaction by Hendricks & Partners of Houston, Texas.
Catalina Shopping Center was sold by Investcorp on January 2, 2003 to The Roberts Organization. The property is a 153,360 square foot community shopping center located in Boynton Beach, Florida that was acquired by Investcorp in July 1998. The property is 98% leased and anchor tenants include Best Buy and Marshalls. Investcorp was represented exclusively in this transaction by CB Richard Ellis of Miami, Florida.
On January 3, 2003, Investcorp also sold St. John's Plantation Apartments to The Lincoln Property Group. The property is a 400-unit, Class B apartment community located in Jacksonville, Florida that was acquired in conjunction with Shelter Properties of Baltimore, Maryland in May 2001. At the time of sale the property was 97% occupied. Investcorp was represented exclusively in this transaction by CB Richard Ellis of Jacksonville, Florida.
John Fraser, a member of Investcorp's Management Committee, commented, "The sale of these four assets brings the firm's total real estate realizations to approximately $315 million over the past year, a record for the firm. These sales have enhanced the value of our portfolio and now offer the potential for strong returns for our investors in 2003."
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