Image used for illustrative purposes.
Investcorp, a Bahrain-based asset manager that counts Mubadala Investment Company as its largest shareholder, announced on Tuesday that it has acquired 64 industrial properties totaling approximately 5.6 million square feet across seven major U.S. markets for an aggregate value of $640 million. dollars.
The properties bring Investcorp’s U.S. industrial real estate holdings to approximately $3.5 billion across approximately 32 million square feet comprising more than 425 buildings, a company press release said Tuesday.
The latest acquisitions provide Investcorp with Class B+/B industrial warehouses that are 95% leased.
Yusef Al Yusef, Managing Partner of Private Wealth at Investcorp, said: “We are delighted to have completed another acquisition in the industrial and logistics sector, as this sector continues to benefit from tailwinds, mainly driven by an increase in the e-commerce, which have been aggravated by the pandemic. We believe that through such acquisitions, we will further strengthen our position as a global leader in alternative investing. »
“Our investment strategy has long approached the U.S. industrial market with optimism, due to increased demand driven by the rise of e-commerce and evolving supply chain challenges,” said Khulood Ebrahim, real estate products at Investcorp.
“We believe our latest acquisitions, which open up access to coveted industrial markets across the country, should be well-equipped to offer attractive potential returns to our investors.”
Earlier last week, Investcorp, a global investment manager specializing in alternative investments, led a $55 million investment in NDR Warehousing.
DR’s well-diversified asset portfolio comprises 18 high-quality logistics parks spread across more than 8 cities including Chennai, Mumbai, National Capital Region, Bangalore, Coimbatore and Kolkata. Over the next few years, the company plans to double its portfolio from the current 11.6 million square feet by expanding to other cities such as Pune and Goa.
Ritesh Vohra, Partner and Head of Real Estate at Investcorp India, said: “In our experience, warehousing has been one of the few sectors that has shown resilience and continued growth, despite headwinds. economies brought about by the pandemic. This structured equity investment in India, backed by a strong operational portfolio, will provide our investors with the opportunity to invest in one of the attractive real estate growth opportunities, with what we believe to be attractive risk-return measures.
N Amrutesh Reddy, MD, NDR, said: “We intend to continue our aggressive growth plans nationwide, supported by our strong execution capabilities and longstanding relationships with our tenants.”
So far, the company has deployed $200 million through two funds across 26 projects. It has an established history in the senior structured credit space in real estate, with a focus on mid-rise and affordable residential projects developed by well-established developers.
Investcorp is also active in the middle-market private equity sector in India and has invested in the consumer technology, healthcare, financial services, retail, SaaS, e-commerce and IT sectors. technology. His investments over the past four years include Intergrow Brands, Bewakoof.com, Freshtohome, Zolo, InCred, Citykart, ASG, NephroPlus, Unilog, XpressBees and Safari Industries.
Meanwhile, last month Investcorp, the alternative asset manager which counts Mubadala Investment Company as its largest shareholder, completed the sale of a portfolio of 10 UK industrial and logistics assets to separate buyers as ‘It seeks to cash in on demand for industrial assets while e-commerce booms.
The properties, located across the UK, were sold to global property investment firm Kennedy Wilson, Realty Income and Investra Capital for £108.4 million ($145.3 million), a Investcorp said in a statement on Sunday.
The properties were sold after the Bahraini asset manager implemented a strategy that involved significant lease extensions and revenue improvements.
“Industrial and logistics real estate assets are critical to driving e-commerce and supporting supply chains, and we remain focused on investing in these sectors,” said Khulood Ebrahim, real estate product specialist at Investcorp.
Demand for industrial and logistics assets has increased due to increased e-commerce activity during the coronavirus pandemic. The European e-commerce market grew to €757 billion in 2020, up around 10% from €690 billion the previous year, according to the trade bodies’ European E-commerce Report 2021. Ecommerce Europe and EuroCommerce.
Investcorp acquired the assets in the second half of 2017 for £69m and sold them last month.
The sale to Kennedy Wilson included a portfolio of eight mid-box industrial and logistics warehouses located in the established distribution markets of Doncaster, Leeds, Bilston, Glasgow and Motherwell. The second sale, to Realty Income, included a modern detached industrial unit located in Hull, totaling 270,388 square feet, according to the company.
The third sale, to Investra Capital, included a set of manufacturing and distribution units located in Tamworth, totaling 201,309 square feet.
Since launching its European property business in 2017, Investcorp has invested around €1 billion in 80 properties in the UK, Germany, the Netherlands, Italy and Belgium, the company said.
Investcorp completed real estate transactions worth $4 billion in the United States in 2021, tapping into demand for residential and industrial properties.
The company bought 200 properties valued at $2.5 billion and sold properties worth $1.5 billion in the world’s largest economy.
“The record level of activity within our North American real estate business in 2021 has created many opportunities to help grow Investcorp and maintain its position as the leading cross-border real estate buyer and seller in the United States,” said Executive Chairman Mohammed Alardhi.
“Long before the pandemic, we perceived residential and industrial real estate investment as one of the most recession-resistant sectors, and this strategy has proven attractive given the business and lifestyle changes, many of which have been accelerated due to Covid-19. ”
The Bahrain-based company invested $1 billion of its clients’ capital in US real estate last year and expanded its industrial holdings in the country to $3.5 billion, comprising more than 425 buildings.
It also increased the value of its US residential assets to approximately $4.1 billion in 18,000 multi-family units and 2,700 student housing beds.