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Deals & Dealmakers

Investcorp sells $200M industrial portfolio

Bahrain-based Investcorp 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 percent at the time of exit. 

MICHAEL O’BRIEN

Michael O’Brien, Managing Director in Real Estate Investment at Investcorp, said, “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 s/f, 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.

The company has been on a buying spree since $11 billion Abu Dhabi sovereign wealth fund Mubadala Development Co. acquired a 20 percent stake in the firm in 2016.

Investcorp currently owns approximately 230 industrial properties across the US totaling approximately 19 million square feet.

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