Investcorp boosts US industrial assets portfolio with $216m acquisition

The company has bought 31 properties with a total area of 1.6 million square feet in five major US markets

Set up in 1982, Investcorp has grown to become one of the leading alternative asset management companies in the region. Photo: Investcorp
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Investcorp, the Bahrain-based asset manager that counts Mubadala Investment Company as its biggest shareholder, has bought 31 industrial properties in the US worth $216 million.

The industrial warehouses, which have an occupancy rate of 94 per cent, are located in five major markets in the US and have a total area of 1.6 million square feet, Investcorp said in a statement on Thursday.

The properties grow its US industrial real estate holdings to about $4.8 billion, covering 42 million square feet in more than 600 buildings.

The properties in the portfolio are located in "geographies with strong demand for infill industrial projects", including Atlanta, Boston, Central New Jersey, Allentown and San Antonio, according to the company.

“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 US.”

Investcorp said its US real estate strategy was focused on primarily investing in the industrial and residential sectors, with 98 per cent of the firm’s current portfolio consisting of these property types.

Set up in 1982, Investcorp has grown to become one of the leading alternative asset management companies in the region.

It oversees $50 billion in assets, including those managed by third parties, and has 14 offices in the US, Europe, the Middle East and across Asia, including India, China, Japan and Singapore.

Since 1996, Investcorp has acquired more than 1,300 properties for a total value of $25 billion, the company has said.

Investcorp went on an acquisition spree during the Covid-19 pandemic to capitalise on lower asset valuations and continued its aggressive portfolio expansion in 2022.

The company has carried its deal-making momentum into 2023. It announced plans in January to invest up to $1 billion in the Gulf property market over the next five years.

The company announced several new deals recently, including acquiring a controlling stake in China-based Shandong Jianuo Electronics and a stake in Shearer Supply, a distributor of heating, ventilation and air conditioning equipment for residential and commercial properties in the US.

In July, Investcorp announced investment of $100 million to buy a majority stake in SEC Newgate, an Italy-based global strategic communications and advocacy group.

The company aims to more than double its assets under management to $100 billion in the next seven years from $37.6 billion as of June 30, 2021, its executive chairman Mohammed Alardhi told Bloomberg in September last year.

Updated: September 22, 2023, 7:11 AM