Investcorp forms $526M venture with leading sovereign wealth funds for US industrial real estate
New York: Global alternative investment firm Investcorp, in partnership with two leading sovereign wealth funds, announced the formation of a new $526 million venture focused on acquiring industrial real estate assets in the United States. The new venture will build on the success and strategy of the initial venture established in November 2021, the company announced on Wednesday. Across both ventures, the two sovereign wealth funds and Investcorp have committed over $1 billion of equity over the past 2.5 years to acquire industrial real estate. The company has not revealed the name of the soverign wealth funds it has partnered with.
Mohammed Alardhi, Executive Chairman, Investcorp, said, “This commitment by two of the world’s most reputable sovereign wealth funds underscores the deep trust in our Real Estate platform and teams. We remain strategically focused on maximizing value in the US market, reinforcing our commitment to delivering robust growth opportunities for global investors and shareholders.”
Investcorp’s industrial real estate holdings in the US comprise $5.1 billion across 43 million square feet. This venture will allow Investcorp to increase its growing US industrial market presence meaningfully, said the company.
“Building upon the achievements of our prior collaboration, we’re set to expand our presence in this high-potential sector and look forward to additional avenues for growth,” said Alardhi.
“The US industrial sector continues to exhibit strong fundamentals, and we continue to see attractive opportunities to expand our investments in the last-mile subset of this asset class,” said Yusef Al Yusef, Head of Distribution at Investcorp.
“In particular, e-commerce, the rapid growth of nearshoring trends, and US fiscal policy/government spending continue to drive record demand for last-mile facilities near large and growing population centres. In addition, the assets we will be targeting for this venture remain largely insulated from the supply issues impacting big-box industrial warehouses,” said AL Yusef.
Since 1996, Investcorp has acquired over 1,300 properties with a total value of over $25 billion. Investcorp’s US real estate strategy invests primarily in the industrial and residential sectors, and 98 per cent of the firm’s $9.2 billion US portfolio consists of these property types.
