15 Feb 2021

Investcorp today announced that one of Investcorp’s affiliates has acquired a portfolio of 13 multi-let industrial assets in South Wales.

The acquisition continues Investcorp’s strategy of investing in industrial real estate and represents its first real estate investment in the Welsh market. Strategically located in close proximity to key transport connections in the wider Cardiff region, the portfolio comprises 1.1 million square feet of industrial, warehouse and distribution accommodation and is currently 87% leased by a diverse group of tenants spanning SMEs, manufacturers, trade counter occupiers and distribution companies.

The acquisition marks Investcorp’s 11th property investment in the UK since launching its European real estate business in 2017, having consistently grown the platform and deploying approximately €800 million across its European portfolio. This includes acquiring more than 40 industrial and logistics properties in the UK, with a combined area of approximately 4 million square feet. In addition, the sale of a portfolio of UK industrial assets to Mileway was completed in October 2020.

Khulood Ebrahim, Real Estate Product Specialist at Investcorp, said: “Industrial, warehouse and logistics real estate are experiencing strong demand to enable e-commerce. We are pleased to further enhance our industrial real estate footprint in the UK by expanding into Wales. Given the limited supply and heightened demand for well-located industrial real estate, we believe that there continues to be the potential for further growth and value creation for the asset class.”

Mohamed Al Sada, Head of Bahrain and Kuwait for Investcorp’s Private Wealth, said: “This acquisition is consistent with our real estate strategy to acquire assets with strong cash flows, solid fundamentals and additional upside potential through active asset management. With a diverse and well-leased base of tenants, we believe that this portfolio will continue to have the potential to generate solid cash flows while having the opportunity to generate additional upside by further increasing occupancy and benefitting from the favorable supply and demand imbalance for well-located properties.”