16 Jan 2008

Investcorp’s US based real estate group today announced the successful recapitalization of 3111 and 3141 Coronado Drive, an office and R&D complex located in the heart of the Silicon Valley. Coronado was originally acquired by the Bixby Land Company in December 2007 for $36.4 million and was recapped today at this same price by Investcorp and Bixby as joint venture partners.   This is the second joint venture for the partners in the last two months, following the recent acquisition and recapitalization by the partners in December 2007 of Airport Technology Park in Silicon Valley.

“Investcorp continues to see strong tenant demand and healthy rent growth in the Silicon Valley office and R&D market,” said Brian Kelley, Principal with Investcorp’s real estate group. “We are pleased to be partnering again with Bixby, a leading operator and investor in the Silicon Valley.”

Coronado is comprised of two adjacent two-story buildings with 118,400 sq. ft. of office and R&D space and is fully leased to Applied Materials (NASDAQ: AMAT), a leading producer of semiconductor equipment.  It is located close to San Jose International Airport and to major expressways that offer ideal access to many residential communities within Santa Clara County.

Investcorp’s acquisitions of 3111 and 3141 Coronado Drive and Airport Technology Park, as well as its recent investments in The Sheraton Tucson Hotel and Suites in Tucson, Arizona, and the Bravern, a 1.6 million square foot mixed-use development project in Bellevue, Washington, continue the group’s recent trend of impressive expansion throughout the western third of the US.  Other noteworthy recent transaction announcements by the group include the acquisition of 280 Park Avenue, a 1.2 million square foot Class A office building in midtown Manhattan, New York City.