Investcorp makes concludes maiden real estate acquisitions in Europe
First step in GBP100 million industrial portfolio plan.
Bahrain-based Investcorp, provider and manager of alternative investment products, has completed its first two real estate investments in Europe.
Investcorp has acquired two modern warehouse units in Doncaster, one of the most important distribution locations in the UK. Additionally, Investcorp has acquired a light manufacturing facility on the Sutton Fields Estate, the largest industrial estate within Hull.
Commenting on the investment, Mohammed Al Ardhi, Executive Chairman of Investcorp, said, “Today’s announcement marks the beginning of an exciting new chapter for Investcorp’s European real estate operations. Our US real estate arm has seen some great success investing in the industrials and logistics space and we look forward to leveraging and replicating that experience and success in Europe as we approach our medium-term target of $25 billion AUM and are actively working on a strategy to increase that to $100 billion.”
The properties comprise a total of 504,000 sq ft and are both let to two different tenants on long leases. Investcorp acquired the assets for a total consideration of approximately GBP 35 million, in partnership with UK focused real estate investment group, Brydell Partners.
The two acquisitions form the seed assets of Investcorp’s UK industrial and logistics programme, which will target income-generating industrial assets across the UK. The programme, which is part of Investcorp’s wider European investment strategy, aims to build a diversified portfolio of single-let assets in the UK with individual lot sizes of GBP 10 million to GBP 20 million and a combined portfolio value in excess of GBP 100 million.
Neil Hasson, Managing Director in Investcorp’s Real Estate Investment division in Europe added, “We are pleased to announce Investcorp’s first real estate acquisitions in Europe. Both the Doncaster and Hull assets fit well within our UK industrial and logistics programme. The assets are well located and we believe they are positioned to benefit from the growth in e-commerce and consumer spending habits. In addition to our UK industrial programme, we continue to explore multiple other European strategies, targeting income generating assets across various sectors and European geographies.”