Investcorp, a global investment firm specializing in alternative investments, has joined forces with two unnamed sovereign wealth funds to launch a fresh initiative targeting the US industrial real estate market. This venture, valued at $526 million, signifies Investcorp's continued bullishness on the sector and its commitment to expanding its American industrial portfolio.
The announcement builds upon a similar partnership established between Investcorp and the sovereign wealth funds in late 2021. Combining the capital from both ventures, the total equity dedicated to US industrial real estate acquisitions surpasses $1 billion over the past two and a half years. This substantial investment reflects Investcorp's belief in the strong fundamentals underpinning the US industrial market.
"The US industrial sector exhibits enduring strength, presenting attractive opportunities for us to bolster our investments, particularly in the last-mile logistics segment," remarked Herb Myers, co-head of Investcorp's US real estate division. The "last-mile" refers to the final leg of a product's delivery journey, often from a distribution center directly to a customer's doorstep. The significant growth of e-commerce has fueled demand for warehouse and distribution facilities strategically located near population centers, making last-mile logistics a particularly compelling niche within the industrial real estate landscape.
This venture serves a dual purpose for Investcorp. Firstly, it allows the firm to leverage its partnership with the sovereign wealth funds, leveraging their substantial capital reserves to pursue larger-scale acquisitions. Secondly, the dedicated funding stream facilitates a more concentrated effort on the US industrial market, enabling Investcorp to capitalize on the sector's tailwinds.
"The commitment from these esteemed sovereign wealth funds underscores their unwavering trust in our real estate platform and team," said Mohammed Alardhi, Investcorp's Executive Chairman. "We are strategically focused on maximizing value within the US market, and this venture reinforces our dedication to delivering robust growth prospects for our global investors and shareholders."
Investcorp's current US industrial real estate holdings stand at a sizeable $5.1 billion, encompassing a footprint of 43 million square feet. The newly formed venture is expected to significantly bolster Investcorp's presence within this flourishing market segment. The influx of capital will likely fuel a strategic acquisition spree, enabling Investcorp to secure strategically located industrial properties across the US.