Investcorp, a leading global provider and manager of alternative investment products, today announced that its U.S.-based Real Estate Investment team recently acquired a portfolio of eight single-tenant distribution properties in various locations across the U.S. for a combined purchase price of approximately $170 million. The properties in the portfolio total 1.4 million square feet and are 100 percent 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,” said Hazem Ben-Gacem, Co-CEO of Investcorp. “We have a bullish outlook on logistics real estate assets because we believe they are supported by strong market dynamics, especially on the back of the healthy growth in e-commerce.
Each of these properties is fully leased by well-known tenants on long-term leases across key cities in the US, enabling us to deliver attractive cash flow to our investors.”
The properties are leased to a diverse roster of tenants with businesses spanning a broad spectrum of industries. Tenants in the portfolio 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. The portfolio is located across eight major U.S. markets: Chicago, IL; Phoenix, AZ; Jacksonville, FL; St. Louis, MO; Charlotte, NC; Cincinnati OH; Cleveland, OH; and, San Antonio, TX.
“With the rapid growth of e-commerce in the US driving increased demand for industrial assets, this portfolio underscores our ability to identify and then execute on long-term, secular trends in real estate,” added Babak Sultani, Managing Director in Real Estate Investment at Investcorp. “The properties in this portfolio boast desirable characteristics that make them attractive from a commercial and investment perspective, for instance easy access to major highways and railways and long-term tenancies with an average of 15 years across the portfolio.”
Including this recent acquisition, Investcorp currently owns 191 industrial buildings totaling 16 million square feet. In the last 18 months, Investcorp has acquired approximately $2 billion of U.S. real estate through 21 different deals.
