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Investcorp’s European Real Estate Group Advances UK Industrial Strategy with the Acquisition of Seven Assets; European Real Estate Acquisitions Now Exceed €1.4 Billion

26 Jun 2023

Investcorp, a leading global alternative investment firm, today announced that its European Real Estate business has, through six separate transactions completed between April and June 2023, acquired seven UK industrial assets with an aggregate value of £60 million. The properties have a total gross lettable area of approximately 890,000 sq. ft. and are a combination of high-quality warehouse/distribution assets and multi let industrial estates, strategically located across the UK and 100% let to strong tenants.

The acquisitions further diversify Investcorp’s UK industrial real estate portfolio and add high-quality assets with stable income streams and attractive potential for capital upside. Investcorp’s European Real Estate team believes that there is increasing demand in the UK for warehousing, distribution centres and manufacturing facilities as a result of the growth of e-commerce and the shift towards more resilient supply chains.

Neil Hasson, Head of Investcorp European Real Estate, said: “We continue to advance our European real estate strategy with the addition of these high-quality industrial assets located across the UK. Key trends such as supply chain resilience and the growth of e-commerce are driving strong demand for these assets, while new supply is constrained. With these attractive market dynamics, we see significant opportunities to create value for our investors through our UK industrial portfolio.”

Tom Martin, Investcorp European Real Estate, added: “We are pleased to close the acquisitions of these seven UK industrial assets. The properties are 100% let, have strong tenants and are located in strategically important areas in the UK. We acquired most of these properties in off-market transactions and will use our active management capabilities to seek to maximize the value of the assets.”

Since launching its European Real Estate business in 2017, Investcorp has acquired nearly €1.4 billion of real estate assets across the UK and Europe. Investcorp’s European portfolio now consists of 10 office properties across Germany, the Netherlands, Belgium, Italy and the UK, as well as 38 industrial assets and in excess of 700 student beds in the UK. Investcorp’s global real estate portfolio exceeds $9.2 billion the United States, $200 million in India, and it recently made a commitment to invest $1 billion in GCC real estate over the next five years.

The seven UK industrial assets acquired by Investcorp include:

  • Distribution warehouse unit totalling 188,000 sq. ft. located on Parkside Industrial Estate, Leeds acquired from AEW UK REIT Plc.
  • Distribution warehouse unit totalling 144,000 sq. ft located on Euroway Trading Estate, Bradford acquired from AEW UK REIT Plc.
  • Warehouse and manufacturing unit totalling 172,000 sq. ft. located on Hampton Park West, Melksham acquired from Surrey County Council.
  • Distribution warehouse unit totalling 143,000 sq. ft. located on Church Lane, Armitage acquired from Ideal Standard via a sale-and-leaseback transaction.
  • Warehouse and manufacturing unit totalling 83,000 sq. ft located on Tachbrook Park Drive, Leamington Spa acquired from CT Property Growth and Income Fund.
  • Multi let industrial estate totalling 93,000 sq. ft known as Centrovell Industrial Estate, Nuneaton acquired from The Wigley Group.
  • Multi let industrial estate totalling 65,000 sq. ft. known as Windsor Court, Mansfield acquired from Schroders.