Investcorp, a leading global provider and manager of alternative investment products, today announced that it has sold a portfolio of industrial real estate properties located in the Boston and Chicago metropolitan areas in two separate transactions for a combined total of more than $200 million.
Investcorp acquired the properties comprising the approximate 1.8 million square foot portfolio of industrial, warehouse and distribution real estate in 2017 and completed a number of value-enhancing initiatives, including increasing overall occupancy of the portfolio to 98% at the time of exit.
Michael O’Brien, Managing Director in Real Estate Investment at Investcorp, said, "This transaction underscores our ability to identify and execute on attractive investment opportunities to deliver value for our clients. Several years ago, we increased our focus on industrial, logistics and warehouse real estate given the ongoing growth of e-commerce and its importance for efficient supply chains. This investment thesis continues to play out and we are pleased to have completed this successful exit and generate strong returns amidst a challenging economic environment.”
The Boston-based properties comprised a warehouse, distribution and flex real estate portfolio totaling approximately 1.1 million square feet. The three individual cold storage Chicago properties were located in close proximity to downtown Chicago and comprised approximately 700,000 square feet, which were used primarily for the storage and distribution of frozen food products.
Herb Myers, Managing Director in Real Estate Investment at Investcorp, said, "With the secular trend towards e-commerce further accelerating in connection with the pandemic, industrial real estate assets close to highly populated regions are becoming increasingly critical. Over the last several years, we have carefully assembled an attractive portfolio of industrial real estate assets in strategically located markets with solid underlying fundamentals. We are encouraged by the resiliency and growth opportunities for industrial, logistics and warehouse real estate and expect to continue being highly active buyers and sellers in this space.”
Investcorp ranked as the second largest international buyer and fourth largest international seller of US real estate for the 2019 calendar year, according to Real Capital Analytics. Investcorp currently owns approximately 230 industrial properties across the US totaling approximately 19 million square feet.
About Investcorp
Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.
We invest a meaningful portion of our own capital in products we offer to our clients, ensuring that our interests are aligned with our stakeholders, including the communities that we operate within, towards driving sustainable value creation. We take pride in partnering with our clients to deliver tailored solutions for their needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach.
As of December 31, 2019, Investcorp Group had US $31.1 billion in total AUM, including assets managed by third party managers, and employed approximately 460 people from 43 nationalities globally across its offices in New York, London, GCC, Mumbai and Singapore. For further information, visit www.investcorp.com and follow us @Investcorp on LinkedIn, Twitter and Instagram.
