Investcorp, Partners Launch $526M Acquisition Venture

In partnership with two leading sovereign wealth funds, Investcorp has formed a new venture focusing on acquiring industrial real estate assets in the U.S. The new investment vehicle is valued at $526 million, giving it about $1.5 billion in buying capacity.

It reportedly is intended to build on the successful approach of its predecessor, Investcorp’s initial venture with the same two funds, which was established in November 2021. Over the past two-and-a-half years and across both ventures, the two unidentified sovereign wealth funds alongside Investcorp have committed more than $1 billion of equity to acquire industrial real estate.

---

READ ALSO: Industrial Momentum Slows Down

---

The initial, late-2021 fund was valued at $550 million.

Investcorp’s industrial real estate holdings in the U.S. currently total about $5.1 billion across 43 million square feet. Since 1996, Investcorp has acquired more than 1,300 properties valued in total at more than $25 billion.

Slowing gently

About a year ago, an Investcorp affiliate and BKM Capital Partners acquired a 740,000-square-foot, seven-property light industrial portfolio in Las Vegas for about $158 million. The seller was Terry York Properties in an off-market transaction.

The U.S. industrial market is expected to stabilize this year, with net absorption on par with that seen in 2023 and real rent growth moderating to 8 percent, according to a 2024 outlook from CBRE. Some of that stability will result from a slowdown in construction deliveries by mid-year, such that they will finish the year down by half from 2023.

CBRE remarked that new development “will remain low for the foreseeable future due to tight lending conditions, economic uncertainty and an oversupply of large warehouse and distribution facilities in certain markets.”