Investcorp boosts US industrial portfolio with $335m acquisitions

26/02/2025 10:35 AST

Investcorp, a leading global alternative investment firm, today (February 26) announced that it has acquired two industrial portfolios in the Minneapolis and Baltimore markets for a gross transaction value of over $335 million.

The acquisitions bolster Investcorp's strategy to expand its presence in key US industrial markets with significant population bases, diversified economies and resilient tenant demand, said the company in a statement.

The US portfolios comprise a total of 27 properties and 2.7 million sq ft, and include a 17-building portfolio in Minneapolis spanning nearly 1.9 million sq ft; and a 10-building portfolio in Baltimore totalling 881,000 sq ft.

On the strategic acquisitions, Yusef Al Yusef, the Global Head of Distribution at Investcorp, said: "The evolution of supply-chain logistics over the past several years has continued to support demand in the US industrial sector, which has retained its strong fundamentals throughout market cycles despite broader economic volatility."

"With e-commerce showing no sign of slowing and a lack of new supply for infill and urban products, we continue to believe in the long-term viability of the asset class," he stated.

As of Q4 2024, market rent growth over the past three years averaged 13.4% in Baltimore and 11.4% in Minneapolis, outpacing the average of 9.3% in the top 50 U.S. metropolitan areas, according to Green Street Advisors.

Minneapolis is anchored by a diverse economy with robust labor dynamics, hosting 17 Fortune 500 companies including Target Corporation, Best Buy Co., Inc., 3M Company and General Mills, Inc.

Baltimore has seen a recent influx of companies due partially to its pro-business environment, and major corporations such as Optum, Jones Lang LaSalle (JLL), Under Armour and Morgan Stanley & Co. call the city home.

"The Minneapolis and Baltimore portfolio acquisitions offer us a unique opportunity to scale our presence in two markets with highly diversified tenancies," remarked Michael Moriarty, the Managing Director and Head of Commercial Acquisitions at Investcorp.

"The properties making up each of these portfolios feature favorable characteristics such as high average clear heights, ample loading docks, plentiful parking and convenient locations proximate to major thoroughfares, employment centers and residential neighbourhoods, ensuring they'll be able to serve the needs of a wide variety of tenants," he stated.

"We look forward to continuing to seek attractive industrial investment opportunities in fundamentally strong markets with proximity to established population bases across the US," he added.

Bahrain-based Investcorp is among the top-5 largest cross-border buyers of US real estate over the past five years, according to Real Capital Analytics.

The firm's US real estate strategy invests primarily in the industrial and residential asset classes, with 98% of its portfolio consisting of these property types.

Additionally, last year the Investcorp real estate team was placed at number 51 on PERE's 100, one of the most prominent rankings of real estate equity investment managers in the industry.

Since 1996, Investcorp has acquired approximately 1,400 properties for a total value of over $26 billion.

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