8 Feb 2023
Investcorp, a leading global alternative investment firm, today announced that its European Real Estate business has acquired a prime logistics facility in Scotland totaling approximately 333,000 sq. ft. (the “Property”) from a UK institution for £23.2 million.
The Property is located on Eurocentral, Scotland’s premier distribution and logistics location, and benefits from its own railway siding which connects to the adjacent Euro Freight Terminal. The Property, which is let to GXO Logistics, a world leader in logistics solutions, is comprised of a purpose-built, high-quality warehouse of approximately 304,000 sq. ft., an office of 22,000 sq. ft. and an external canopy of 7,000 sq. ft.
The importance of the location for the UK logistics sector, robust tenant, and high-quality real estate, all underscore the potential of the investment.
The investment in the Property is another milestone as Investcorp advances its UK industrial real estate strategy. Investcorp sold 10 UK industrial assets in January 2022 for a total of £108.4 million and continues to look for industrial investment opportunities across the UK. UK logistics real estate has strong market fundamentals, with historically low vacancy rates while speculative development is set to decline. The investment also underscores Investcorp’s commitment to the logistics sector globally. Investcorp recently acquired a warehouse facility in Saudi Arabia, and its global portfolio now exceeds $3.5 billion in the United States.
Neil Hasson, Head of Investcorp European Real Estate, said: “This latest acquisition of a prime logistics facility aligns with our strategy to focus on UK logistics assets. High occupier demand and constrained supply are creating attractive investment opportunities. We continue to monitor opportunities in the UK logistics and industrial sector as well as actively manage our portfolio for the benefit of our investors.”
Tom Martin, Investcorp European Real Estate, added: “We are very excited to close the acquisition of another UK logistics facility. It is a key asset that is well connected to important transport infrastructure and is in a market with strong occupational fundamentals. We believe this will provide resilient and inflation-protected income as well as opportunities for capital upside.”
Since launching its European real estate business in 2017, Investcorp has acquired approximately €1.3 billion of real estate assets across the UK and Europe. Investcorp’s European portfolio now consists of 10 office properties across Germany, the Netherlands, Belgium, Italy and the UK, as well as 36 UK industrial assets and in excess of 550 student beds in the UK.