Investcorp has expanded its footprint in key industrial markets in the Southern and Western US with the acquisition of three industrial properties valued at $300m (€270.9m).
The company has in separate transactions acquired the 597,161sqft Dallas & Atlanta Infill Portfolio comprising a 16-building portfolio; the 17-building West Coast Infill Portfolio encompassing 539,909sqft of assets across Denver, Las Vegas, San Diego and the San Francisco Bay Area; and the 279,887sqft Tampa Industrial Portfolio of eight buildings.
Herb Myers, co-head of real estate North America at Investcorp, said: “We remain confident in the industrial asset class, which now represents nearly 60% of our real estate assets under management in the US. While the overall sector has shown signs of normalising from pandemic-era highs, a lot of this stabilisation is concentrated among newly built speculative properties.
“We continue to see strong performance and compelling investment opportunities for existing infill assets in high-growth markets, and believe the sector will continue to benefit from positive tailwinds and sustained demand over the long term.”
Michael Moriarty, MD and head of commercial acquisitions at Investcorp, said: “As re-shoring and nearshoring have reshaped the industrial and manufacturing landscapes in the US, well-located multi-tenanted industrial assets have continued to attract robust interest from tenants and investors.
“The properties comprising these three investments reflect these characteristics, and we expect they will provide us with resilient cash flow and the ability to fulfill the needs of a variety of tenants. Overall, we feel the year-over-year industrial rent growth will remain solid, resulting in strong long-term investment opportunities.”
In March this year, Investcorp created a new $526m US industrial real estate venture with the backing of two unnamed ”leading sovereign wealth funds”.
At the time, Investcorp’s industrial real estate holdings in the US comprise $5.1bn of assets across 43m sqft. The venture was to provide Investcorp with the ability to meaningfully increase its US industrial market presence, the company said.
The new venture built on the strategy of the initial venture that was established in November 2021. Across both ventures, the two sovereign wealth funds, alongside Investcorp, committed over $1bn of equity over the past two and a half years to acquire industrial assets.
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