Investcorp invests $300mn in US industrial realty sector

MANAMA: Bahrain’s Investcorp has recently made a significant move in the industrial real estate sector by investing $300 million to acquire three key industrial real estate markets in the United States.

The strategic investment further consolidates Investcorp′s impressive US holdings, which now total approximately $5.3 billion.

The acquisitions, which add around 1.5 million square feet to its industrial portfolio, underscore Investcorp’s commitment to expanding its influence within the dynamic arena of industrial real estate, particularly across the Southern and Western regions of the United States.

The latest acquisitions encompass notable portfolios, including the Dallas & Atlanta infill portfolio, the West Coast infill portfolio, which spans cities such as Denver, Las Vegas, San Diego, and the San Francisco Bay Area, and the Tampa industrial portfolio.

Potential of industrial assets

These regions are recognised for their robust economic growth and strategic logistics capabilities, further enhancing Investcorp’s footprint, which now includes approximately 42 million square feet across roughly 640 buildings. This substantial presence reflects the firm’s proactive approach to capitalising on the evolving demands of the industrial sector.

Herb Myers, Co-Head of Real Estate North America at Investcorp, expressed a strong belief in the viability and future potential of industrial assets. He noted that nearly 60 per cent of Investcorp’s real estate assets under management in the United States are now dedicated to this robust sector.

While acknowledging that the overall industrial real estate sector is showing signs of normalising from the pandemic-induced highs, Myers emphasised that much of this stabilisation is occurring within newly built speculative properties.

 Importantly, he highlighted ongoing performance and the compelling investment opportunities afforded by existing infill assets in high-growth markets. This perspective illustrates a nuanced understanding of the market dynamics at play, as well as confidence in sustained demand despite broader economic fluctuations.

Investcorp’s origins in Bahrain and its noteworthy investors, including Mubadala Investment Company, which acquired a 20 per cent stake in 2016, contribute to its strategic positioning in the global market. This backing not only offers financial stability but also enhances the firm’s ability to pursue significant investment opportunities in high-value sectors such as industrial real estate.

As the company continues to expand its portfolio, it stands to benefit from positive market developments and the escalating demand for logistics and distribution centers, particularly in light of changing consumer behaviors and supply chain considerations post-pandemic.