Dubai: Bahrain's asset management company Investcorp's US real estate exposure now has a value of $2 billion plus. This follows the buy of 32 industrial properties in four US cities for a total capitalisation of $280 million plus.
This gives Investcorp with a 96 per cent leased portfolio of Class A and B warehouse, distribution, and flex industrial buildings and with a diversified tenant base. The portfolio includes a brand new property leased in full to a Fortune 100 company. The properties comprising the portfolio are primarily located in Chicago, Illinois and Cleveland, Ohio, which rank as the first and 11th largest industrial markets in the US, respectively.
The Bahrain fund operator holds 22 million square feet at more than 260 buildings in the US. Tarek AlMahjoub, Managing Director at Investcorp for the Dubai and Oman markets said: “Industrial, logistics and warehouse real estate continues to be a highly attractive, and resilient opportunity for Investcorp. We are confident these highly leased properties will continue to generate solid cashflows while benefitting from the ongoing growth of e-commerce.”
Investcorp ranked as the second largest international buyer and fourth largest international seller of US real estate in 2019. In addition, it ranked as a Top 15 overall buyer of US industrial real estate for last year.
Babak Sultani, Managing Director in the Placement and Distribution team at Investcorp, said: “E-commerce sales are growing at a 15 per cent CAGR, far outpacing industrial real estate supply at a 1.5 per cent CAGR. We believe these tailwinds along with greater supply chain diversification, and on-shoring of goods in the US due to COVID-19 to maintain greater inventory levels, will drive greater demand for industrial real estate assets like the ones we have assembled.”