Investcorp Grows US Industrial Real Estate Strategy with $216 Million Portfolio Acquisition

21 Sep 2023

US industrial real estate holdings reaches $4.8 billion across approximately 42 million square feet

Investcorp, a global investment manager specializing in alternative investments, today announced that it has acquired 31 industrial properties totaling approximately 1.6 million square feet across five major US markets for an all-in value of $216 million. The properties grow Investcorp’s US industrial real estate holdings to approximately $4.8 billion across 42 million square feet comprised of more than 600 buildings.

The latest acquisition provides Investcorp with infill industrial warehouses that are 94% occupied. The properties in the portfolio are located in geographies with strong demand for infill industrial projects and include Atlanta, Georgia, Boston, Massachusetts, Central New Jersey, Allentown, Pennsylvania and San Antonio, Texas. The properties will benefit from their locations in well-established markets within the United States that contain major population bases, diversified economies, and consistent rent growth.

“Industrial assets have enjoyed consistent performance throughout the recent market volatility as a result of strong fundamentals that are driving outsized demand and considerable rent growth when compared to other asset classes,” said Herb Myers, Co-Head of Real Estate North America at Investcorp. “The continued expansion of e-commerce, coupled with the need for diversified supply chains, has created significant opportunities for investment in factories and warehouses across the United States. We look forward to continuing our 27-year heritage of investing in US real estate assets with the acquisition of properties in these major industrial markets.”

“Investcorp has a demonstrated history of delivering risk-adjusted returns across economic cycles because of our strategic focus on investing in US industrial assets. This latest acquisition is a testament to our confidence in the tailwinds that are shaping the industrial sector and that unique opportunities for scale and diversification remain in this market,” said Michael Moriarty, Principal and Head of Commercial Acquisitions at Investcorp.

Since 1996, Investcorp has acquired over 1,300 properties for a total value of approximately $25 billion. Investcorp’s US real estate strategy invests primarily in the industrial and residential sectors and today 98% of the firm’s portfolio consists of these property types. According to Real Capital Analytics, Investcorp is among the top-10 largest cross-border buyers and sellers of US real estate over the past five full years.