Investcorp and Two SWFs Form $526 Million Venture on Buying US Industrial Sector

Investcorp, a leading global alternative investment firm, in partnership with two leading sovereign wealth funds, on Wednesday announced the formation of a new $526 million venture focused on acquiring industrial real estate assets in the US.

The new venture will build on the success and strategy of the initial venture that was established in November 2021. Across both ventures, the two sovereign wealth funds, alongside Investcorp, have committed over $1 billion of equity over the past 2.5 years to acquire industrial real estate.

Executive Chairman of Investcorp, Mohammed Alardhi, said that this commitment by two of the world’s most reputable sovereign wealth funds underscores the deep trust in Investcorp’s real estate platform and teams.

He added: “We remain strategically focused on maximising value in the US market, reinforcing our commitment to delivering robust growth opportunities for global investors and shareholders. Building upon the achievements of our prior collaboration, we are set to expand our presence in this high-potential sector and look forward to additional avenues for growth.”

Increasing US Presence

Investcorp’s industrial real estate holdings in the US currently comprise $5.1 billion across 43 million sq ft. This new venture will provide Investcorp with the ability to meaningfully increase its U.S. industrial market presence.

Herb Myers, Co-Head of Real Estate, United States for Investcorp, said that the US industrial sector continues to exhibit strong fundamentals, and they were seeing attractive opportunities to expand our investments in the last-mile subset of this asset class.

“In particular, ecommerce, the rapid growth of nearshoring trends, and U.S. fiscal policy and government spending continue to drive record demand for last-mile facilities located near large and growing population centers. In addition, the assets we will be targeting for this venture remain largely insulated from the supply issues impacting big-box industrial warehouses,” Myers added.

Since 1996, Investcorp has acquired over 1,300 properties for a total value of over $25 billion. Investcorp’s US real estate strategy invests primarily in the industrial and residential sectors and today 98% of the firm’s $9.2 billion US portfolio consists of these property types.

According to Real Capital Analytics, Investcorp is among the top-5 largest cross-border buyers of US real estate and U.S. industrial real estate over the past five full years.