TLDR:
- Investcorp partners with two wealth funds to launch a $526 million fund targeting US industrial real estate investment.
- The US industrial property market experienced significant growth in 2021 and 2022, with Investcorp aiming to expand its presence in this sector.
Investcorp Teams Up with Two Wealth Funds for USD526M Venture Targeting US Property Investment
Bahrain-based asset manager Investcorp has collaborated with two sovereign wealth funds to establish a $526 million fund focused on investing in industrial real estate in the United States. This partnership builds upon a previous venture initiated in November 2021, with over $1 billion collectively committed to acquiring industrial properties. Mohammed Alardhi, Executive Chairman of Investcorp, highlights the strategic focus on maximizing US market value and foresees significant growth opportunities in the industrial sector.
The US industrial property market witnessed remarkable demand in recent years, leading to a record 607 million square feet of new supply. However, this surge outpaced demand, resulting in increased vacancy rates across all regions. Colliers projects a stabilization of the industrial vacancy rate around 6.6% by the end of 2024.
Investcorp, which currently holds industrial property assets worth $5.1 billion in the US, aims to significantly expand its presence in this segment with the introduction of the new investment venture. With a focus on the enduring strength of the US industrial sector, Investcorp targets investments in the industrial and residential sectors, with 98% of its $9.2 billion US portfolio consisting of these property types.
Since its inception in 1982, Investcorp has acquired over 1,300 properties valued at approximately $25 billion, ranking among the top five largest cross-border buyers of US real estate and industrial property over the past five years. With assets under management totaling $52 billion, Investcorp maintains a global presence with 14 offices across the US, Europe, GCC, and Asia.
