Investcorp grows US industrial real estate holdings with $380 million portfolio acquisition in Seattle, Phoenix, Los Angeles and Dallas

7 Oct 2021

Investcorp, a leading global provider and manager of alternative investment products, today announced that it has acquired 89 industrial properties totaling approximately 2.2 million square feet across four major US markets for a total purchase price of US $380 million. The properties grow Investcorp’s US industrial real estate holdings to approximately US $2.8 billion across approximately 27 million square feet comprised of more than 385 buildings.

The latest acquisitions provide Investcorp with a 95% leased portfolio of Class B industrial warehouses with a diversified tenant base across a range of industries, including: technology, industrial services, business & administrative services, and maintenance & contracting services, among others. The properties comprising the portfolio are primarily located in the top major industrial markets by size including Los Angeles, California (ranked 2nd), Dallas, Texas (ranked 4th), Phoenix, Arizona (ranked 14th) and Seattle, Washington (ranked 17th)*. These markets have experienced strong growth in recent years as the rise of e-commerce and need for more efficient supply chains has increased demand for warehousing, distribution and fulfillment centers.

“As active investors in the US industrial sector, we have observed firsthand the strength of our existing portfolio as e-commerce has boomed and supply chains are streamlined within growth markets throughout the US. We are excited to expand our already sizable US industrial portfolio with these key acquisitions in some of the largest and strongest industrial markets in the country,” said Herb Myers, Co-Head of Real Estate North America at Investcorp. “We look to invest in fast-growing regions with diversified economies, strong transportation infrastructure and access to the booming technology industry which is what we believe we have found in these industrial hubs.”

Michael Moriarty, Principal, Commercial Acquisitions at Investcorp added: “The industrial asset class has enjoyed increased growth in recent years as e-commerce fueled the evolution of supply chain logistics and limited levels of new supply were unable to match new demand. Our latest acquisitions capitalize on the strong demand for industrial properties as the supply-demand imbalance is expected to continue to drive exponential rent growth.”

Since 1996, Investcorp has acquired approximately 1,025 properties for a total value of over $21 billion. According to Real Capital Analytics, Investcorp is the 3rd largest cross-border buyer of US real estate, and 4th largest cross-border seller over the full years of 2019 and 2020.

* Source: CBRE Econometric Advisors as of Q2 2021