Investcorp Acquires Three US Industrial Properties

Investcorp, the Bahrain-based global alternative investment firm Investcorp, has announced that it has acquired three industrial properties totalling around 1.5 million s ft for approximately $300 million.

The investments further solidify the firm’s presence in key industrial markets across the Southern and Western US and strengthen Investcorp’s $5.3 billion U.S. industrial portfolio, which spans roughly 42 million s ft and approximately 640 buildings.

The acquisitions include Dallas & Atlanta Infill Portfolio, a 16-building portfolio totalling 597,161 s ft adding to Investcorp’s existing significant industrial presence in these markets, West Coast Infill Portfolio, a 17-building portfolio encompassing 539,909 s ft across Denver, Las Vegas, San Diego and the San Francisco Bay Area. These markets consist of highly desirable and institutional western markets that Investcorp has continued to target.

The third acquisition of Tampa Industrial Portfolio, an 8-building industrial portfolio comprising 279,887 s ft in a market that has seen robust job and population growth.

Exudes Confidence

Herb Myers, Co-Head of Real Estate North America at Investcorp, said that they were confident in the industrial asset class, which now represents nearly 60% of the company’s real estate assets under management in the US.

He said that while the overall sector has shown signs of normalising from pandemic-era highs, a lot of this stabilisation is concentrated among newly built speculative properties.

“We continue to see strong performance and compelling investment opportunities for existing infill assets in high-growth markets, and believe the sector will continue to benefit from positive tailwinds and sustained demand over the long term,” he added.

Michael Moriarty, Managing Director and Head of Commercial Acquisitions at Investcorp, said that as re-shoring and nearshoring have reshaped the industrial and manufacturing landscapes in the US, well-located multi-tenanted industrial assets have continued to attract robust interest from tenants and investors.

He added: “The properties comprising these three investments reflect these characteristics, and we expect they will provide us with resilient cash flow and the ability to fulfill the needs of a variety of tenants. Overall, we feel the year-over-year industrial rent growth will remain solid, resulting in strong long-term investment opportunities.”

Investcorp’s US real estate strategy invests primarily in the industrial and residential sectors, with 98% of the firm’s US portfolio consisting of these property types. The firm is among the top-5 largest cross-border buyers of US real estate over the past five years, according to Real Capital Analytics. Additionally, the Investcorp real estate team recently placed at number 51 on PERE’s PERE 100, one of the most prominent rankings of real estate equity investment managers in the industry.

Since 1996, Investcorp has acquired approximately 1,400 properties for a total value of over $26 billion.