Investcorp Acquires $170M Distribution Center Portfolio Across US
Industrial properties show continued strong demand as the 1.4 million square feet of space in the portfolio is 100% leased.
NEW YORK CITY—Showing the ongoing high demand for industrial property, Investcorp has acquired a portfolio of eight single-tenant distribution properties in locations across the US for a combined purchase price of approximately $170 million. The properties, totaling 1.4 million square feet, are 100% leased.
“We are pleased to add these properties to our growing portfolio of assets in the logistics space, a core component of our global real estate investment strategy,” says Rishi Kapoor, Co-CEO of Investcorp, the global alternative investments firm. “Each of these properties is fully leased by well-known tenants on long-term leases, enabling us to deliver attractive cash flow to our investors while simultaneously capitalizing on what we believe are strong underlying market dynamics and robust growth of the sector.”
The properties are located in Chicago, IL; Phoenix, AZ; Jacksonville, FL; St. Louis, MO; Charlotte, NC; Cincinnati OH; Cleveland, OH; and San Antonio, TX. Tenants include FedEx Ground, a multinational courier delivery services company; XPO Logistics, one of the top 10 global providers of supply chain transportation and logistics services; Conagra Foods, a packaged foods company that produces and distributes food products to supermarkets, restaurants and other food establishments; and Spectrum, a provider of consumer cable television, internet, telephone and wireless services.
Investcorp underscores that the portfolio offers attractive cash flow for investors, with all properties having long-term leases with well-known tenants. The leases average 15 years across the portfolio. In addition, the properties are located with convenient access to major highways and railways, a key factor in long-term tenancies. Investcorp notes the acquisition aligns with long-term, secular trends in the real estate market with the growth of e-commerce continuing to drive industrial demand.
With this recent acquisition, Investcorp owns 191 industrial buildings totaling 16 million square feet. In the last 18 months, the investment firm has acquired approximately $2 billion of US real estate through 21 different deals.
The $22 billion investment firm is headquartered in Bahrain, with its US office in New York City and offices in London, Riyadh, Abu Dhabi, Doha, Singapore and Mumbai.