Investcorp acquires 32 industrial properties in US for $280 million

Investcorp, a Bahrain-based asset manager which counts Mubadala Investment Company as its biggest shareholder, on Monday announced that it has acquired 32 industrial properties totaling approximately 3.5 million square feet across four major US markets for a total capitalisation of over $280 million.

According to the company’s press release, the properties grow Investcorp’s wider US industrial real estate portfolios to approximately $2 billion with 22 million square feet comprised of more than 260 buildings.

The latest acquisitions provide Investcorp with a new 96 per cent leased portfolio of Class A and B warehouse, distribution, and flex industrial buildings with a diversified tenant base across a range of industries.

The portfolio includes a brand new, state of the art building leased 100 per cent to a leading multinational Fortune 100 company. The properties comprising the portfolio are primarily located in the major industrial markets of Chicago, Illinois and Cleveland, Ohio, which rank as the first and 11th largest industrial markets in the US, respectively. Additional MSAs comprising the portfolio include Columbus and Cincinnati, Ohio.

Speaking on the occasion, Yusef Al Yusef, Head of Gulf Institutional Clients Group at Investcorp, said, “We are excited to further enhance our robust industrial real estate footprint in the US with the addition of these stable, high-quality assets in major logistics markets.

“We believe that the current environment is only further accelerating e-commerce penetration and the need for more resilient supply chains.”

Tarek AlMahjoub, Managing Director at Investcorp for the Dubai and Oman markets said: “Industrial, logistics and warehouse real estate continues to be a highly attractive, and resilient opportunity for Investcorp.

We are confident that these highly leased properties will continue to generate solid cash flows while benefitting from the ongoing growth of e-commerce.”

Babak Sultani, Managing Director in the Placement and Distribution team at Investcorp, said: “Industrial, warehouse and logistics real estate are among our highest conviction global investment themes in today’s landscape.”

“E-commerce sales are growing at a 15 per cent CAGR, far outpacing industrial real estate supply at a 1.5 per cent CAGR. We believe these tailwinds along with greater supply chain diversification, and on-shoring of goods in the US due to COVID-19 to maintain greater inventory levels, will drive greater demand for industrial real estate assets like the ones we have assembled across our portfolio.”

Investcorp ranked as the second largest international buyer and fourth largest international seller of US real estate for the 2019 calendar year, according to Real Capital Analytics.

In addition, Investcorp ranked as a top-15 overall buyer of US industrial real estate for the 2019 calendar year, according to Real Capital Analytics.

Investcorp is a global investment manager, specialising in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.

We invest a meaningful portion of our own capital in products we offer to our clients, ensuring that our interests are aligned with our stakeholders, including the communities that we operate within, towards driving sustainable value creation.

We take pride in partnering with our clients to deliver tailored solutions for their needs, utilising a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach.

Investcorp has today a presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore. As of June 30, 2020, Investcorp Group had $32.2 billion in total AUM, including assets managed by third party managers, and employed approximately 450 people from 44 nationalities globally across its offices.

WAM / Agencies