Investcorp, a leading provider and manager of alternative investment products, has announced it 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. 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 £35m, in partnership with UK-based asset manager, 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 £10m to £20m and a combined portfolio value in excess of £100m.
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 U.S. 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 $25bn AUM and are actively working on a strategy to increase that to $100bn.”
Commenting on the acquisitions, Neil Hasson, Managing Director in Investcorp’s Real Estate Investment division in Europe said: “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.”
