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Investcorp grows US industrial real estate holdings with $380m portfolio acquisition

October 9, 2021
real estate

(WAM) -- Investcorp, a Bahrain-based asset manager which counts Mubadala Investment Company as its biggest shareholder, today 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 US$380 million. The properties grow Investcorp’s US industrial real estate holdings to approximately US$2.8 billion across approximately 27 million square feet comprised of more than 385 buildings.

The latest acquisitions provide Investcorp with a 95 percent leased portfolio of Class B industrial warehouses with a diversified tenant base across a range of industries, including: technology, industrial services, business and administrative services, and maintenance and 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), according to CBRE Econometric Advisors as of Q2 2021.

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 centres.

Khulood Ebrahim, Real Estate Product Specialist at Investcorp, commented, '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. 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.'

Tarek AlMahjoub, Head of UAE and Oman for Investcorp’s Private Wealth, said, 'In the past few years, we have seen a systemic change in consumer shopping patterns and that’s driving demand for industrial assets to support e-commerce that will likely outpace current supply. We are delighted to expand our already sizable US industrial portfolio with these acquisitions in some of the largest and strongest industrial markets in the US.'

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 3rd largest cross-border buyer of US real estate, and 4th largest cross-border seller over the full years of 2019 and 2020.

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