Investcorp Capital Exits US Real Estate Amidst Market Headwinds
Bahrain’s Investcorp Capital, an ADX-listed alternative investment firm, has divested its real estate holdings in the United States. This strategic move comes as the American housing market faces headwinds from rising mortgage rates and general economic uncertainty.
Investcorp Capital announced it has exited 12 residential multi-occupancy assets across five U.S. states, including the complete liquidation of a multifamily portfolio valued at an aggregate price of $550 million. Despite what the firm described as a “tempered multifamily market,” the sale was secured at a premium, indicating a favorable outcome for Investcorp.
“Though rent growth has cooled from the highs we saw in recent years, the long-term fundamentals supporting the multifamily sector remain compelling,” stated Mohamed Aamer, Interim CEO of Investcorp Capital. He affirmed that the company will continue to assess properties in various target markets.
The divested assets were highly occupied, averaging 94% occupancy, and are located in key rental markets. These include major metropolitan areas such as Atlanta; Philadelphia; Raleigh, North Carolina; St. Louis, Missouri; and the Florida cities of Tampa and Orlando. Most recently, the final step in this liquidation process was completed at the end of February 2025 with the sale of a 432-unit apartment community in Atlanta.
The broader U.S. housing market continues to navigate evolving conditions. Freddie Mac reported last week that mortgage rates have slightly increased, with the 30-year fixed-rate mortgage (FRM) averaging 6.86% as of May 22, 2025, up from 6.81% the previous week. However, this rate remains lower than the 6.94% average from a year ago. Similarly, the 15-year FRM averaged 6.01%, up from 5.92% last week but down from 6.24% a year prior. Sam Khater, Freddie Mac’s Chief Economist, noted that “with more inventory for buyers to choose from than the last few years, purchase application activity continues to hold up.”
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