Investcorp Teams Up with Two Wealth Funds for USD526M Venture Targeting US Property Investment

Investcorp Teams Up with Two Wealth Funds for USD526M Venture Targeting US Property Investment

– Investcorp collaborates with two sovereign wealth funds to launch a $526 million fund targeting US industrial real estate investment.

– The venture builds upon an initial partnership formed in November 2021, with over $1 billion collectively committed to acquiring industrial properties.

– Mohammed Alardhi, Executive Chairman of Investcorp, underscores the strategic focus on maximizing US market value, anticipating significant growth opportunities in the industrial sector.

Bahrain-based asset manager Investcorp has partnered with two sovereign wealth funds to establish a $526 million fund geared towards investing in industrial real estate in the United States. 

The move comes as Investcorp identifies “attractive” opportunities to expand its presence in this sector.

This latest fund initiative builds upon an initial venture initiated in November 2021 by Investcorp and the two wealth funds. Together, they have committed over $1 billion in equity over the past two and a half years for the acquisition of industrial properties, as stated by the company in a recent announcement.

Mohammed Alardhi, Executive Chairman of Investcorp, reiterated the strategic focus on maximizing value in the US market. He emphasized the company’s intent to broaden its presence in this promising sector and anticipates additional avenues for growth.

The US industrial property market experienced remarkable demand in 2021 and 2022, resulting in a record 607 million square feet of new supply, according to a report by real estate firm Colliers. However, this surge in supply outpaced demand, leading to increased vacancy rates across all US regions.

Colliers projects a narrowing of the gap between supply and demand in 2024, with a subsequent stabilization of the industrial vacancy rate around 6.6% towards the year’s end.

Investcorp currently holds industrial property assets worth $5.1 billion in the US, covering 43 million square feet. With the introduction of the new investment venture, the company aims to significantly expand its presence in this segment.

Yusef Al Yusef, Head of Distribution at Investcorp, highlighted the enduring strength of the US industrial sector and the appealing opportunities within the last-mile subset of this asset class. Factors such as e-commerce growth, nearshoring trends, and government spending continue to drive demand for last-mile facilities near major population centers.

Investcorp’s US real estate strategy primarily targets investments in the industrial and residential sectors. 98% of the company’s $9.2 billion US portfolio consists of these property types.

Since its inception in 1982, Investcorp has acquired over 1,300 properties valued at approximately $25 billion. The company ranks among the top five largest cross-border buyers of US real estate and industrial property over the past five years, according to data from research firm Real Capital Analytics.

With assets under management totaling $52 billion, including assets managed by third-party managers, Investcorp maintains a global presence with 14 offices across the US, Europe, GCC, and Asia.

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