Bahrain-headquartered global manager of alternative investment products, Investcorp has announced that it has acquired 89 US-based industrial properties for a total price of USD 380 million.
The properties are spread across a total of 2.2 million square feet, and are located in four major US markets, a statement from the company said. These markets, which are also some of the top major industrial markets by size, include Los Angeles (California), Dallas (Texas), Phoenix (Arizona), and Seattle (Washington).
The acquisitions follow a string of deals that Investcorp has been making this year. It acquired several US multifamily residential units for a total price of USD 330 million this year, as well as an industrial portfolio in Wales, a USD 420 million multifamily fund, and nine Europe-based industrial assets for a combined price of approximately USD 66 million.
This is in addition to a number of individual acquisitions and sales the company has been making across Asia, the US, and Europe this year.
Overall, Investcorp has acquired about 1,025 properties for a total value surpassing USD 21 billion since 1996.
E-commerce influences industrial acquisitions at Investcorp
The statement noted that in recent years, the US industrial markets it has invested in have seen strong growth, with rising e-commerce activity leading to a demand for efficient supply chains, and warehousing, distribution and fulfillment centres. Further, Investcorp noted in a report published this year that e-commerce has helped the industrial market recover from the financial crisis last year.
The company expected this trend to continue, with industrial real estate making the highest returns for the most consecutive number of quarters ever in the US commercial real estate sector, as of Q4 2020.
“The industrial asset class has enjoyed increased growth in recent years as e-commerce fuelled the evolution of supply chain logistics and limited levels of new supply were unable to match new demand,” Michael Moriarty, Principal, Commercial Acquisitions at Investcorp, said. “Our latest acquisitions capitalise on the strong demand for industrial properties as the supply-demand imbalance is expected to continue to drive exponential rent growth.”
Investcorp’s portfolio of US industrial real estate holdings grew to USD 2.8 billion with the acquisitions, comprising over 385 buildings and spread across about 27 million square feet.
Moreover, the company now holds a 95% leased portfolio of Class B industrial warehouses through the latest acquisitions, the statement said. The portfolio is spread across a range of industries. These include technology, industrial services, business and administrative services, maintenance and contracting services, and more. The portfolio also has a diversified tenant base, the statement added.
Photo credits: https://www.investcorp.com/investcorp-acquires-industrial-portfolio-in-wales/