Bahrain's Investcorp Buys US Properties In $170m Deal

Bahrain-based Investcorp on Tuesday announced that its Real Estate Investment team has acquired a portfolio of eight single-tenant distribution properties in various locations across the US for about $170 million.

The properties in the portfolio total 1.4 million square feet and are 100 percent leased, the company said in a statement.

It added that the properties are leased to a diverse roster of tenants including FedEx Ground, XPO Logistics, Conagra Foods and Spectrum.

The portfolio is located across eight major US markets - Chicago, Phoenix, Jacksonville, St Louis, Charlotte, Cincinnati Cleveland and San Antonio.

“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.”

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 US real estate through 21 deals.

“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,” said Babak Sultani, managing director in Real Estate Investment at Investcorp.