Manama, Oct. 7 (BNA) – Investcorp, the global provider and manager of alternative investment products, announced the acquisition of 89 industrial properties with a total area of approximately 2.2 million square feet in four major US markets at a total purchase price of $380 million.
Real Estate increases Investcorp’s holdings of US industrial real estate to approximately $2.8 billion across approximately 27 million square feet comprising more than 385 buildings.
Recent acquisitions provide Investcorp with a leased portfolio of 95% of Class B industrial warehouses with a diversified tenant base across a range of industries, including: technology, industrial services, commercial and management services, maintenance and contracting services, among others.
The properties that make up the portfolio are primarily located in major industrial markets by volume including Los Angeles and California (2nd), Dallas and Texas (4th), Phoenix, Arizona (14th) and Seattle, Washington (17th).
These markets have experienced strong growth in recent years as the emergence of e-commerce and the need for more efficient supply chains has increased the demand for warehousing, distribution and fulfillment centers.
“Over the past few years, we have continued to successfully implement Investcorp’s asset acquisition strategy with what we believe are strong cash flow, strong fundamentals and additional upside potential through active asset management,” said Kholoud Ibrahim, real estate product specialist at Investcorp. She said.
“We are seeing strong demand for industrial and logistics real estate due to increased e-commerce demand, and we are pleased to expand our manufacturing portfolio in the United States with these acquisitions.”
Mohammed Al-Sada, President of Bahrain and Kuwait, Investcorp Private Wealth, said that Investcorp has been one of the most active investors in the US real estate sector.
“We continue to see a growing demand for industrial properties as e-commerce fuels the evolution of supply chain logistics. We believe the increased demand for these types of properties should continue to maintain the strong rental growth rates that they are currently benefiting from,” she said.
Since 1996, Investcorp has acquired 1,025 properties with a combined value of more than $21 billion. According to Real Capital Analytics, Investcorp is the third-largest cross-border buyer of US real estate, and the fourth-largest cross-border seller over the entirety of 2019 and 2020.