Acquires 32 industrial, warehouse and logistics properties across Midwestern United States for total capitalization of over US $280 million

Investcorp, a leading global provider and manager of alternative investment products, today announced that it has acquired 32 industrial properties totaling approximately 3.5 million square feet across four major US markets for a total capitalization of over US $280 million. The properties grow Investcorp’s wider US industrial real estate portfolios to approximately US $2 billion with 22 million square feet comprised of more than 260 buildings.

The latest acquisitions provide Investcorp with a new 96% leased portfolio of Class A and B warehouse, distribution, and flex industrial buildings with a diversified tenant base across a range of industries, including: healthcare, logistics, e-commerce, industrials, telecommunications and food services, among others. The portfolio includes a brand new, state of the art building leased 100% to a leading multinational Fortune 100 company. The properties comprising the portfolio are primarily located in the major industrial markets of Chicago, Illinois and Cleveland, Ohio, which rank as the first and 11th largest industrial markets in the US, respectively. Additional MSAs comprising the portfolio include Columbus and Cincinnati, Ohio.

Herb Myers, Managing Director and Co-Head of Real Estate North America at Investcorp, said, “The global COVID-19 pandemic has further underscored the importance of industrial real estate assets located near major population and logistics hubs. We are excited to enhance our wider industrial real estate portfolio through the acquisition of these highly occupied properties in desirable industrial markets. E-commerce sales are experiencing accelerated growth, and is expected to generate between 400 million to 1 billion square feet of excess demand for industrial space over the next several years. We believe these properties align with our disciplined criteria for targeting stable, cash flow generating assets with further upside potential.”

Babak Sultani, Managing Director in the Placement and Distribution team at Investcorp said: “Industrial, warehouse and logistics real estate are among our highest conviction global investment themes in today’s landscape. E-commerce sales are growing at a 15% CAGR, far outpacing industrial real estate supply at a 1.5% CAGR. We believe these tailwinds along with greater supply chain diversification, and on-shoring of goods in the US due to COVID-19 to maintain greater inventory levels, will drive greater demand for industrial real estate assets like the ones we have assembled across our portfolio.”

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. In addition, Investcorp ranked as a top-15 overall buyer of US industrial real estate for the 2019 calendar year, according to Real Capital Analytics.

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 June 30, 2020, Investcorp Group had US $32.2 billion in total AUM, including assets managed by third party managers, and employed approximately 450 people from 44 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.