Investcorp Refinances 137 Industrial Buildings for $1B
Investcorp has secured $1 billion to refinance 137 industrial buildings that span more than 14 million square feet across the U.S.
In total, four groups of properties are included, backed by two top sovereign wealth funds through an investment vehicle. One of them consists of a 65 Class B asset portfolio, totaling nearly seven million square feet in "eight prime industrial markets," according to Investcorp. Another large one involves 63 Class B properties, spanning almost seven million square feet in six unnamed high-growth regions.
The others involved in the refinancing are only solo, but higher-quality assets. One is a 220,000 square foot Class A light business park in the Phoenix metro area and the other is a 170,000 square foot Class A site in the Orlando metro area.
Morgan Stanley provided the loan.
The refinancing continues Investcorp's activity in the industrial sector this year. Just last week, the investment firm announced the sale of a 3.5 million square foot industrial portfolio in the Midwest. Also, earlier this year, Investcorp bought portfolios in Baltimore and Minneapolis for more than $335 million, consisting of a total of 27 buildings. At the time, the New York-based firm said it would continue to explore investment in industrial submarkets in proximity to areas with favorable population dynamics.
“Our ability to refinance these industrial portfolios is a testament to their strong performance to date, as well as the sustained tailwinds driving activity in our target markets," Herb Myers, global head of real assets for Investcorp, said in a statement.
"We continue to see robust tenant demand amidst fewer new deliveries. We will continue to capitalize on opportunities to invest in industrial assets that have similar characteristics.”
As economic and trade uncertainty rattles the industrial sector, smaller users are currently driving the activity in the asset class, according to a CBRE analysis. John Morris, president of Americas industrial & logistics and advisory services at the firm, specifically noted that demand is favoring spaces in the 50,000 to 100,000 square foot range.
Meanwhile, Investcorp views the conditions in the debt market as "attractive" currently.
Source: GlobeSt/ALM