Investcorp acquires $160m US industrial properties

25/04/2017 16:36 AST

Investcorp, a leading provider and manager of alternative investment products, said its US-based real estate arm has acquired a portfolio of industrial properties in Chicago and Boston metropolitan areas for $160 million.

The Bahrain-based company pointed out that the portfolio included six properties with an aggregate of approximately 1.8 million sq ft of warehouse and distribution space.

Ryan Bassett, the principal (Real Estate Investment) at Investcorp, said: "An uptick in e-commerce has improved the fundamentals in the industrial/logistics real estate asset class. As consumers increasingly expect faster and more frequent deliveries, logistics companies are seeking properties in close proximity to large population centers, like Chicago and Boston."

"This solid demand, combined with limited new supply, creates attractive market dynamics for landlords in these locations," he noted.

The Chicago portfolio, located in close proximity to downtown Chicago, comprises three individual cold storage industrial buildings that are used primarily for the storage and distribution of frozen food products, said a statement from Investcorp.

There is limited cold storage industrial space in Chicago and minimal new development that is able to service the city’s growing consumer base as demand for fresh, organic and perishable food products continues to grow.

Investcorp said it is partnering with Bridge Development Partners, one of the largest owner/operators of cold storage in the Chicago market, it stated.

In Boston, the Bahraini group has purchased a warehouse, distribution and flex portfolio totalling 1.1 million sq ft. These properties are located in the southern portion of the Boston metropolitan area, with convenient access to major transportation thoroughfares for easy distribution to businesses throughout the city and adjacent suburbs.

The supply and demand dynamics are strong for industrial space in the Boston region and these properties boast a large and diversified tenant base with long lease durations, providing a steady cash flow for landlords.

Investcorp has recapitalized these assets with Condyne Capital Partners, a vertically integrated owner/operator focused on northeastern commercial real estate assets, said Bassett.

With these investments, Investcorp adds to its Boston-based industrial assets, as the Firm purchased a four-building industrial portfolio in the region comprising 900,000 square feet in October 2016, he added.

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