Investcorp acquires US real estate holdings for $380 million

Manama, Oct. 7 (BNA): Investcorp, a global provider and manager of alternative investment products, announced that it has acquired 89 industrial properties totaling approximately 2.2 million square feet across four major US markets for a total purchase price of $380 million. The properties grow Investcorp’s US industrial real estate holdings to approximately $2.8 billion across approximately 27 million square feet comprised of more than 385 buildings. The latest acquisitions provide Investcorp with a 95% leased portfolio of Class B industrial warehouses with a diversified tenant base across a range of industries, including: technology, industrial services, business & administrative services, and maintenance & contracting services, among others. The properties comprising the portfolio are primarily located in the top major industrial markets by size including Los Angeles, California (ranked 2nd), Dallas, Texas (ranked 4th), Phoenix, Arizona (ranked 14th) and Seattle, Washington (ranked 17th). These markets have experienced strong growth in recent years as the rise of e-commerce and need for more efficient supply chains has increased demand for warehousing, distribution and fulfillment centers. “Over the past few years, we have continued to successfully execute Investcorp’s strategy to acquire assets with what we believe to be strong cash flows, solid fundamentals and additional upside potential through active asset management," Khulood Ebrahim, Real Estate Product Specialist at Investcorp, said. "We are seeing a strong demand for industrial and logistics real estate due to the increased demand for e-commerce, and we are pleased to expand our US industrial portfolio with these acquisitions.” Mohamed Al Sada, Head of Bahrain and Kuwait for Investcorp’s Private Wealth, said that Investcorp has been one of the most active private investors in the US real estate space. "We continue to see increasing demand for industrial properties as e-commerce fuels the evolution of supply chain logistics. We believe that the increasing demand for these types of properties should continue to sustain strong rental growth rates they’re currently benefiting from," he said. Since 1996, Investcorp has acquired approximately 1,025 properties for a total value of over $21 billion. According to Real Capital Analytics, Investcorp is the third largest cross-border buyer of US real estate, and fourth largest cross-border seller over the full years of 2019 and 2020.