Investcorp's asset portfolio in Europe reaches $1.2bn as it enters Italian market

Since 2017, the Bahrain company has invested in 80 properties across the UK, Germany, the Netherlands, Italy and Belgium

Investcorp had $40.4b in total assets under management as of December 31, 2021, including assets managed by third-party managers. Photo: Investcorp

Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, has entered the Italian real estate market with two new acquisitions, taking its total investment into Europe to nearly €1.1 billion ($1.2bn).

The Bahrain-based company acquired Kering’s Italian headquarters in Milan for €74 million last year and recently acquired the UN’s International Fund for Agricultural Development’s (IFAD) office in Rome for €128m, it said in a statement on Monday.

Since launching its European real estate business in 2017, Investcorp has invested in 80 properties across the UK, Germany, the Netherlands, Italy and Belgium.

“Milan and Rome continue to have a growing demand for office space … these acquisitions are in line with our strategy of investing and growing our real estate portfolio across Europe,” Yusef Al Yusef, head of Investcorp’s private wealth, said.

Kering’s Italian headquarters in Milan. Photo: Investcorp

“Going forward, we will continue to identify opportunities with the potential to drive value for our clients and grow our footprint across Europe.”

Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region, investing across asset classes and geographies. The company went on an acquisition spree during the coronavirus pandemic to capitalise on lower asset valuations and is bullish on the growth prospects for its portfolio.

Investcorp said it had $40.4bn in total assets under management as of December 31, 2021, including assets managed by third-party managers.

Located adjacent to the Gucci’s Milan headquarters, the Milan property spans 18,000 square metres of office space that is spread across nine floors. Its occupant Kering specialises in luxury goods and is the owner of brands such as Gucci, Yves Saint Laurent and Bottega Veneta.

The Rome property is 100 per cent occupied under a long-term lease by IFAD that is dedicated to eradicating poverty and hunger in rural areas of developing countries. It was built in 2008 to accommodate IFAD, which has been based in Rome since its formation in 1977.

UN’s International Fund for Agricultural Development’s office in Rome. Photo: Investcorp

“Italy is a market where we are beginning to see increasing investor interest, so we are excited to add these high-quality, income-generating office properties to our growing portfolio,” said Khulood Ebrahim, real estate specialist at Investcorp.

“Investcorp has a long track record of investing in Italy, and we know Kering well, having successfully acquired and subsequently sold the leading fashion brand Gucci, which is now in the Kering portfolio,” she added.