The Bahrain based Investcorp-the investment major has acquired 32 industrial projects that aggregates to 3.5 Million Square Feet across four of the core US markets worth a deal of $280 Million.
The properties expansion will get a broader Industrial real estate portfolio’s via Investcorp’s for an approximate $2Billion deal with around 22 million square feet that comprises of more than in excess of 260 buildings.
The investment major Investcorp-Bahrain recorded a $165 million loss for the year ending June 30th against profits of $131 million a year earlier. They stated that portfolio would get beneficial from the E-Commerce boom witnessed as during the Covid-19 Pandemic.
As according to Real Capital Analytics, and the real estate properties are primarily located in core industrial markets of Chicago, Illinois, as well as Cleveland, Ohio rank as the number one and Eleventh biggest industrial markets in the US, respectively. Investcorp ranks within the second biggest global buyer and fourth biggest global seller of US real estate for the 2019 calendar year.
The Managing Director at Investcorp for the Dubai as well as Oman Markets Tarek Al Mahjoub stated that “The Industrial, Logistics and Warehouse real estate continue to be hugely luring, as well as resilient opportunity for Investcorp. They are hugely confident that these high leased properties will be progressing in generation of powerful cash flows while getting benefitted via the current expansion of E-Commerce.”
The Managing Director within the Placement as well as Distribution team at Investcorp Babak Sultani also stated that: “In fact for the Investment major Investcorp, the Industrial, Warehouse as well as logistics real estates are amongst their highly principle global investment themes within the current landscape. The E-Commerce boom is found at 15 percent CAGR, that is also hugely outpacing the overall enterprise real estate supply at a 1.5 percent CAGR.”
He also further emphasized that “they trust these tailwinds alongside huge supply-chain diversification, as well as on-shoring of the goods within US all due to COVID-19 for maintenance of better inventory levels driving path for huge demand for the industrial real estate assets like the shortlisted ones they have amassed across for bolstering their portfolio’s success.”
Citing the straight negative impact due to COVID-19 Pandemic, within August, the Investcorp had recorded huge slump for the year ending June 30th. Investcorp within a statement stated that “The current Covid-19 Pandemic turmoil has also had an impact on the asset-based income that recorded a $100 Million slump from an $89 Million profit.” The global investment bank said its fee income had slumped to $288 million, 23 percent down on $376 million for the 2018–19 financial year.
The investment major had also in its latest round of expansion program, acquired properties within the US cities of Columbus, Cincinnati as well as Ohio.
The Investcorp, that accounts Abu Dhabi’s Mubadala Investment Company as its huge shareholder, has hugely been dynamic within European real estate sector since 2017, with an overall investments worth €800m (Dh3.5bn) in the UK, the Netherlands, Belgium and Germany.
During the month of July, Investcorp traded a portfolio of industrial properties in the US for more than $200m, with the transaction generating “strong returns”. The asset manager also set up a new platform last month to invest in Chinese healthcare companies.