Investcorp Acquires U.S. Distribution Center Portfolio for $170M

Rishi Kapoor, Co-CEO, Investcorp

Investcorp, a global provider and manager of alternative investment products, 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% 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 Rishi Kapoor, co-CEO of Investcorp. “Each of these properties is fully leased by well-known tenants on long-term leases, enabling us to deliver attractive cash flow to our investors while simultaneously capitalizing on what we believe are strong underlying market dynamics and robust growth of the sector.”

The properties are leased to a diverse roster of tenants with businesses spanning a broad spectrum of industries. Tenants 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, IllinoisPhoenix, Arizona; Jacksonville, FloridaSt. Louis, MissouriCharlotte, North CarolinaCincinnati, OhioCleveland, Ohio; and, San Antonio, Texas.

“With the rapid growth of e-commerce driving increased demand for industrial assets nationwide, this portfolio underscores our ability to identify and then execute on long-term, secular trends in real estate,” added Herb Myers, managing director in real estate investment at Investcorp. “The properties in this portfolio offer convenient access to major highways and railways, which is one key factor driving the long-term tenancies at these properties that average 15 years across the portfolio.”

Including this recent acquisition, Investcorp 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.