Investcorp, the alternative asset manager that lists Mubadala Investment Company as its biggest shareholder, has bought industrial properties in the US to boost its real estate portfolio in the world’s largest economy.
The total value of the deal, which comprises 89 properties, is $380 million, the Bahrain-based fund manager said in a statement on Thursday.
“We are seeing a strong demand for industrial and logistics real estate due to the increased demand for e-commerce, and we are pleased to expand our US industrial portfolio with these acquisitions,” said Khulood Ebrahim, real estate product specialist at Investcorp.
Industrial and multi-family residential properties are expected to continue to perform strongly in the US, driven by shifting consumer preferences following the coronavirus pandemic, Investcorp said in a report in March.
The properties are in cities across the US, including Los Angeles, Dallas, Phoenix and Seattle.
“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 fulfilment centres,” Investcorp said.
With assets worth more than $37 billion under management, Investcorp has been on a deal-making spree over the past year.
It made five new private equity investments in the US and Europe, two add-on acquisitions and 11 investments in businesses across Asia in the 12-month period to the end of June.
Investcorp also spun off six private equity investments and sold several property assets in the US and Europe during the past financial year, it said in August.
The company’s total investments in the US industrial real estate sector jumped to $2.8bn with the latest acquisition, according to the company.
Since 1996, Investcorp has bought more than 1,000 properties worldwide, with a total value of more than $21bn.
Investcorp, which is planning a rapid expansion in its GCC and Asian portfolio of investment, expects its assets under management to more than double, to $100bn in the medium term from about $40bn, its executive chairman Mohammed Alardhi said last month.