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Investcorp’s Real Estate Credit Fund Inks Deal
Investcorp’s US real estate group has acquired several mezzanine loans collateralized by various single-asset properties and multiple-asset hotel portfolios located across the US.
August 1, 2008
Investcorp’s US real estate group has acquired several mezzanine loans collateralized by various single-asset properties and multiple-asset hotel portfolios located across the US. The combined value of the junior and senior mezz loans is roughly $210 million, although Investcorp’s purchase price was not disclosed. The investment was partially funded by Investcorp’s newly formed Investcorp Real Estate Credit Fund, a $1 billion vehicle formed to buy whole, mezzanine tranches and commercial mortgage-backed securities throughout the US.
“As the market transitions, opportunities emerge for Investcorp's debt investment business,” John Fraser, co-head of Investcorp's real estate group, said in a statement. “We have been an active investor in the US real estate market for more than 25 years, and, as such, are well positioned to draw upon our extensive relationships within the lending community to seize on opportunities to grow our debt business.”
As part of the deals, Investcorp acquired two mezz loans from an unnamed “Wall Street investment bank,” which are secured by a portfolio of hotel properties, and acquired four mezz loans on two “nationally-branded” hotels in New York’s Times Square. A major commercial bank was the seller in the second deal.
(SourceMedia, the publisher of this newsletter, is owned by Investcorp.)
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