Investcorp Capital, a major player in the private markets and alternative investment sector, has announced that it has completed the sale of its US industrial real estate portfolio for an aggregate sale price of $360 million.
The portfolio, which spans six investments across six states and 2.3 million sq ft, fetched the group a 40% increase in its returns as the portfolio was bought less than four years ago for an initial purchase price of $262 million.
The portfolio was sold to take advantage of the robust industrial capital markets and strong property operating fundamentals over its hold period, said Investcorp Capital in a statement.
Returns for the portfolio from acquisition in March 2021 are estimated to be 12% Internal Rate of Return (IRR) and a 1.4x Multiple on Invested Capital (MOIC), above projections of 8.5%.
The sold portfolio investments included:
*Tempe Commerce Park: 536,000 sq ft across 5 buildings
*Minneapolis Industrial Portfolio: 616,000 sq ft across 16 buildings
*Florida Industrial Portfolio: 512,000 sq ft across 13 buildings
*California Industrial Portfolio: 303,000 sq ft in one building
*New Jersey Industrial Portfolio: 174,000 sq ft across 3 buildings and
*Nevada Industrial Portfolio: 165,000 sq ft in one building
On the transaction, Interim CEO Mohamed Aamer, said: "We are pleased to have capitalised on the attractive exit opportunities in the industrial real estate asset class. Our priority is to invest in opportunities to provide the best possible returns for shareholders."
"The continued prevalence of e-commerce, along with limited levels of new supply in the US, have contributed to significant growth for the industrial sector over the past five-plus years, validating the strength of our investment thesis. We continue to see further opportunities within the sector," he stated.
Investcorp Capital said the properties in the portfolio reside in top industrial submarkets with resilient demand.
The assets boast diversified rent rolls and have continued to experience strong rental growth over the last few years despite rising interest rates. This showcases the company’s ability to add long-term value despite fluctuating economic environments, it added.-TradeArabia News Service