Investcorp’s Record Deal

Reinforcing its position as the fifth-largest foreign U.S. real estate investor, the Bahrain-based company bought $800 million worth of industrial assets in two separate deals.
Image courtesy of Investcorp

Investcorp has made its biggest real estate portfolio acquisition ever with the purchase of a 10.2 million-square-foot collection of U.S. industrial assets. The Bahrain-based global provider and manager of alternative investment products added 126 properties to its holdings in two separate transactions valued at a total of approximately $800 million. 

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Investcorp purchased part of the portfolio from Taurus and bought the remaining assets from a joint venture between an institutional investor and Schmier & Feurring Properties. The group of industrial facilities is 91.5 percent leased and spans a handful of leading industrial markets: Atlanta; Chicago; Dallas; Charlotte, N.C.; and Memphis, Tenn. It’s a diverse collection of Class A and Class B buildings running the gamut of industrial property types, including warehouse, distribution and light manufacturing/R&D. 

The opportunity to acquire these properties is consistent with our established criteria for real estate investments that generate stable cash flows, have high occupancies and are located in some of the most desirable industrial, logistics hubs across the country,” Herb Myers, managing director in Real Estate Investments at Investcorp, told Commercial Property Executive.

Expanding by leaps and bounds

With the completion of the transaction, Investcorp’s U.S. industrial footprint now comprises more than 240 properties, accounting for a total of approximately 20 million square feet. The deal reinforces the company’s position as the fifth largest foreign buyer of U.S. real estate. Earlier this year, Investcorp expanded its presence in the U.S. industrial market with the $170 million purchase of a group of eight buildings encompassing an aggregate 1.4 million square feet. And more transactions are certainly on the horizon.

Image courtesy of Investcorp

“We have been actively building our industrial and logistics portfolio to capitalize on the growth opportunities of the rise of e-commerce, consumers and businesses increasingly demanding faster deliveries and the importance of industrial real estate assets near major population centers for supply chains across sectors,” Myers said.