Bahrain’s Investcorp sells UK industrial assets in a $145Mn deal

Investcorp, a leading provider and manager of alternative investment products, has reportedly completed the sale of a portfolio of 10 logistics and industrial assets in the UK for separating buyers as it wants to cash in on demand for industrial assets at a time when e-commerce is booming.

As per a statement issued by Investcorp, the properties situated around the UK were sold to Realty Income, Investra Capital and Kennedy Wilson – a property investment company – for £108.4 million ($145.3 million).

The sale of properties took place amid the Bahraini asset manager imposed a new strategy which included substantial lease extensions and developments in revenue.

Khulood Ebrahim, a real estate product specialist at Investcorp, said that industrial and logistics real estate is crucial for amplifying e-commerce and backing supply chains. So, the firm is going to invest further in these sectors.

The demand for logistics and industrial assets has surged due to the greater e-commerce activity during the COVID outbreak.

As per the 2021 European E-commerce Report by trade bodies Ecommerce Europe & EuroCommerce, the e-commerce market of Europe grew to €757 billion ($850 billion) in 2020, up by almost 10% as compared to the previous year.

The assets were acquired by Investcorp during the second half of 2017 for £69 million ($92 million) and sold last month.

The sale to Kennedy Wilson includes a portfolio of 8 “mid box” logistics and industrial warehouses located in the established distribution markets of Leeds, Doncaster, Glasgow, Bilston and Motherwell.

According to the company, the second sale to Realty Income includes an up-to-date detached industrial unit located in Hull, tallying 270,388 square feet.

Investra Capital, the third sale, covered a collection of manufacturing and distribution units situated in Tamworth, tallying 201,309 sq ft.

Moreover, since introducing the European real estate business in 2017, Investcorp has approximately invested €1 billion ($1.3 billion) into 80 properties across the UK, the Netherlands, Germany, Belgium, and Italy.

Source Credit - https://www.thenationalnews.com/business/economy/2022/01/30/investcorp-sells-uk-industrial-and-logistics-assets-in-145m-deal/