Bahrain fund manager Investcorp spends $640m on industrial properties in US
Latest deal builds on Investcorp's already heavy exposure to US property market
Dubai: The Bahrain fund manager Investcorp has bought 64 industrial properties in the US for $640 million, continuing with its preference for commercial real estate investment possibilities in that market. The new deal extends to 5.6 million square feet in seven major US cities.
The latest additions raise Investcorp’s US industrial real estate holdings to approximately $3.5 billion over 32 million square feet comprised of more than 425 buildings. “We are pleased to have made another acquisition in the industrial and logistics sector as this sector continues to benefit from strong tailwinds, mainly driven by an increase in e-commerce, that were heightened by the pandemic,” said Yusef Al Yusef, Managing Partner for Investcorp’s Private Wealth.
According to Real Capital Analytics, Investcorp is among the top-10 largest cross-border buyers and sellers of US real estate over the past three full years of 2019, 2020 and 2021.Late in 2020, the fund manager also sold some of its US property holdings - a multi-family residential portfolio - in a deal that fetched $900 million.
Near 100% leased
The latest buys provide Investcorp with Class B+/B industrial warehouses that are 95 per cent leased. The properties are in Chicago, Dallas and Houston, the New York metro, Atlanta, Philadelphia, and St. Louis. “The properties have exposure to dense population centers with robust transportation infrastructure, proximity to interstate highways and large, diverse economies,” Investcorp said in a statement.
“Our investment strategy has long approached the US industrial market with optimism, due to increased demand brought about by the rise of e-commerce and evolving supply-chain challenges,” said Khulood Ebrahim, Real Estate Product Specialist at Investcorp. “We believe that our latest acquisitions, which unlock access to highly coveted industrial markets across the country, should be well-equipped to deliver attractive potential returns for our investors.”
Since 1996, Investcorp has acquired over 1,100 properties for about $23 billion.