Industrial Midwest

Investcorp purchases 56-property industrial portfolio for $300 million

Investcorp purchases 56-property industrial portfolio for $300 million,ph01

Investcorp’s U.S.-based real estate team recently acquired its largest U.S. warehouse portfolio, totaling approximately 4.5 million square feet and including 56 industrial properties across seven metropolitan markets, for a total purchase price of approximately $300 million.

“We are proud to announce our largest U.S. warehouse portfolio acquisition since the inception of the business, giving us the opportunity to expand our presence in this important and growing industrial/warehouse sector in the U.S.,” said Mohammed Alardhi, executive chairman of Investcorp. “This investment further reflects our commitment to growing Investcorp’s footprint in the U.S., which is a key driver of the firm’s overall growth strategy and an area in which we will look to continue expanding as opportunities arise.”

This investment provides Investcorp with a 90 percent leased portfolio of Class A and B warehouse, light manufacturing and flex buildings, across the e-commerce, manufacturing, design, wholesaling and food services industries. The portfolio was purchased as a single investment, with over 60 percent of the property located in “tier one” industrial markets.

The properties that comprise this portfolio include 14 single- and multi-tenant Class B industrial warehouse/manufacturing buildings in the Chicago metro area and nine multi-tenant Class A and B warehouses in the Minneapolis MSA. The portfolio contains 17 additional assets outside of the Midwest, in the Phoenix, Houston, San Antonio and Philadelphia/Delaware markets.

“This investment will help our clients gain and increase exposure to the highly relevant industrial sector in a diversified manner and benefit from some of the secular trends shaping the retailing industry in the U.S.,” said Rishi Kapoor, co-chief executive officer of Investcorp “The properties in this portfolio are located in supply-constrained infill areas offering ‘last mile’ proximity to major population centres.”

Investcorp’s New York-based real estate team is an active investor in U.S. commercial and residential real estate equity and high-yield debt. Since 1996, the firm has acquired more than 550 properties for a total value of more than $14 billion. Across the U.S., Investcorp targets existing office, retail, industrial, multifamily and hospitality properties located in the largest 30 metropolitan areas with a focus on mid-market core and core-plus investment opportunities.

This recent acquisition represents Investcorp’s ninth industrial portfolio, all of which were acquired over the past 36 months. With this addition, Investcorp now owns 14 million square feet of U.S. industrial assets.