$526 million investment venture, with capacity for approximately $1.5 billion of buying power, to focus on industrial real estate in the U.S.
New York, NY — March 20, 2024 – Investcorp, a leading global alternative investment firm, 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 that was established in November 2021. Across both ventures, the two sovereign wealth funds, alongside Investcorp, have committed over $1 billion of equity over the past 2.5 years to acquire industrial real estate.
The Executive Chairman of Investcorp, Mohammed Alardhi, commented: “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. 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.”
Investcorp’s industrial real estate holdings in the U.S. currently comprise $5.1 billion across 43 million square feet. This venture will provide Investcorp with the ability to meaningfully increase its growing U.S. industrial market presence.
“The U.S. 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 U.S. fiscal policy/government spending continue to drive record demand for last-mile facilities located near large and growing population centers. In addition, the assets we will be targeting for this venture remain largely insulated from the supply issues impacting big-box industrial warehouses.”
Since 1996, Investcorp has acquired over 1,300 properties for a total value of over $25 billion. Investcorp’s U.S. real estate strategy invests primarily in the industrial and residential sectors and today 98% of the firm’s $9.2 billion U.S. portfolio consists of these property types. According to Real Capital Analytics, Investcorp is among the top-5 largest cross-border buyers of U.S. real estate and U.S. industrial real estate over the past five full years.
