Investcorp Grabs $300M Industrial Portfolio

By Barbra Murray

Investcorp continues its expansion in the U.S. industrial sector with the acquisition of a 4.5 million-square-foot warehouse portfolio. With its New York real estate team leading the effort, Bahrain-based Investcorp purchased the group of 56 properties in a $300 million transaction.

Prime locations are a noted feature of Investcorp’s newly acquired collection of warehouse, light manufacturing and flex buildings. “The properties in this portfolio are located in supply constrained infill areas offering ‘last mile’ proximity to major population centers,” Rishi Kapoor, co-chief executive officer of Investcorp, said in a prepared statement.

The portfolio encompasses both Class A and B properties spanning five states, with a heavy presence in Texas. The facilities in the Lone Star State, all of which are multi-tenanted, include 16 warehouse/flex buildings in Dallas, two warehouses in Houston and a single warehouse in San Antonio. Chicago is home to 14 single and multi-tenant warehouse/manufacturing facilities, while an additional nine multi-tenant warehouse and flex buildings can be found in the Philadelphia/Delaware market. Completing the bunch are another nine multi-tenant warehouses in Minneapolis and five multi-tenant manufacturing assets in Phoenix. All told, the portfolio is 90 percent leased.

Homing in on industrial

The new group of warehouse assets marks Investcorp’s ninth industrial portfolio purchase in the U.S. “This investment further reflects our commitment to growing Investcorp’s footprint in the US, which is a key driver of the firm’s overall growth strategy and an area in which we will look to continue expanding as opportunities arise,” Mohammed Alardhi, executive chairman of Investcorp, said in prepared remarks.

For the last three years, Investcorp has been building up its presence in the U.S. industrial market. The company’s purchases in 2017 included a 1.8 million-square-foot portfolio with a price tag of $160 million. Earlier this year the global alternative investment manager picked up four industrial portfolios encompassing an aggregate 2.7 million square feet for a total of $206 million. Investcorp’s latest acquisition expands the company’s U.S. industrial holdings to 14 million square feet.

Investcorp’s laser-like focus on the industrial sector dovetails with current trends among cross-border investors in the U.S. real estate market. According to the Association of Foreign Investors in Real Estate’s 2018 survey, the U.S. continues to lead the pack as the country providing the most stable and secure real estate investments and, with no small thanks to the e-commerce boom, the industrial sector ranks first as the most desirable property type.

Images courtesy of Investcorp