Investcorp Announces Completion of Purchase of Equity One Portfolio in Texas for $388 Million

NEW YORK, April 26 /PRNewswire/ -- Investcorp, a global investment group whose real estate team is based in New York, today announced the completion of a previously announced purchase of a portfolio of retail shopping centers located in Texas from Equity One, Inc. . The transaction's final terms covered the purchase of 29 retail properties totaling approximately 2.8 million square feet for a combined purchase price of $388 million. Under the terms of the transaction, the properties were acquired from Equity One by a joint venture in which Investcorp holds an 80% stake, with Equity One holding the remaining 20% interest.

Located in the fast growing metropolitan markets of Dallas, Houston, and San Antonio, Texas, the properties included in this transaction are primarily situated in established in-fill locations, with attractive demographics in their immediate trade areas. Approximately 50% of the space in the portfolio is leased by national retailers, including H-E-B, Bally's Total Fitness, Kroger, Ross Stores, T.J. Maxx, PETCO Animal Supplies, Sports Authority, 24 Hour Fitness, and Kohl's, among others. Equity One will continue to serve as manager and leasing agent for the properties.

Herb Myers, a Principal with Investcorp, said, "The portfolio that we have acquired consists of high-quality retail assets that are highly occupied and have a diverse mix of national, regional and local tenants. The properties are well located in metropolitan markets that continue to demonstrate strong growth. The portfolio will not only generate robust cash flow over the short to medium term, but also holds significant potential for excellent capital gains over the longer term."

"Equally noteworthy, the completion of this transaction marks the commencement of an important new joint venture relationship with Equity One, a preeminent player in key retail markets across the United States. We are pleased that our strategy of partnering with leading companies in specific segments of the real estate market continues to create new and rewarding opportunities for our firm and its investors," continued Chris Sameth, also a Principal with Investcorp.

F. Jonathan Dracos, Managing Director and Co-Head of Investcorp's Real Estate Group, added, "This transaction is an important step towards achieving our real estate acquisition goals for 2006. Including these 29 shopping centers, we expect to acquire $1.5 billion worth of property across all asset classes this year."

About Investcorp Real Estate

Investcorp's New York-based team of real estate professionals invests in all major real estate asset classes with risk/return profiles ranging from core plus to opportunistic, for mid- to long-term holding periods. The team oversees a portfolio with a current value of approximately $2.8 billion in selected urban and suburban markets in the U.S. Over the past decade, Investcorp has acquired real estate with an initial capitalization of approximately $5.4 billion.

In addition to investing in real estate, Investcorp focuses on corporate investments, asset management and technology investments. Established in 1982, it now manages total investments in alternative assets of approximately $9.5 billion. Additional information on Investcorp may be found at http://www.investcorp.com/ , or through the contacts below.

Contacts: Business Media Jon Dracos /John Fraser/Joel Moody Joseph Kuo/Todd Fogarty Investcorp Kekst and Company 212-599-4700 212-521-4800