Investcorp expands $3.5 billion US industrial real estate portfolio with new $640 million acquisition

15 Feb 2022

Investcorp, a leading global alternative investment firm, today announced that it has acquired 64 industrial properties totaling approximately 5.6 million square feet across seven major US markets for an all-in value of US $640 million. The properties grow Investcorp’s US industrial real estate holdings to approximately US $3.5 billion across approximately 32 million square feet comprised of more than 425 buildings.

The latest acquisitions provide Investcorp with Class B+/B industrial warehouses that are 95% leased. The properties are primarily located in the top major industrial markets by size including Chicago, Illinois (ranked 1st), Dallas, Texas (ranked 2nd), the New York metro (ranked 4th), Atlanta, Georgia (ranked 5th), Houston, Texas (ranked 6th), Philadelphia, Pennsylvania (ranked 9th) and St. Louis, Missouri (ranked 20th).* The properties have exposure to dense population centers with robust transportation infrastructure, proximity to interstate highways and large, diverse economies.

“The industrial and logistics sector has continued to benefit from strong tailwinds, mainly driven by an increase in e-commerce, that were heightened by the pandemic. This activity has led to a need for available warehouses and fulfillment centers to match the exceedingly high demand. With this trend expected to continue throughout 2022, we’re eager to expand our portfolio and capitalize on the current drivers of industrial growth,” said Herb Myers, Co-Head of Real Estate North America at Investcorp.

Michael Moriarty, Principal, Commercial Acquisitions at Investcorp added: “We’ve entered 2022 optimistic about the macroeconomic factors that are driving industrial growth in the US. Our latest acquisitions reflect our expectation that outsized rent growth will continue and that the industrial fundamentals in each market will remain strong.”

Since 1996, Investcorp has acquired over 1,100 properties for a total value of approximately $23 billion. 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.

*Source: CBRE Econometric Advisors as of Q3 2021