Investcorp snaps up industrial assets in South Wales

The investment marks the firm's first foray in the Welsh property market

One of Investcorp’s affiliates acquired a portfolio of 13 multi-let industrial assets in South Wales. Courtesy Investcorp

Bahrain-listed alternative asset management firm Investcorp acquired 13 industrial assets in South Wales, marking its first real estate foray into the Welsh market.

The properties are located near key transport connections in the wider Cardiff region, spanning 1.1 million square feet of industrial, warehouse and distribution accommodation, Investcorp said on Monday.

They are currently 87 per cent leased by a broad group of tenants ranging from small and medium enterprises to manufacturers, trade counter occupiers and distribution companies.

"Industrial, warehouse and logistics real estate are experiencing strong demand to enable e-commerce," Khulood Ebrahim, real estate product specialist at Investcorp, said. "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.”

The acquisition marks Investcorp’s 11th property investment in the UK since starting its European real estate business in 2017, into which it has deployed approximately €800 million ($970.9m). This included acquiring more than 40 industrial and logistics properties in the UK, with a combined area of approximately 4 million square feet.

Investcorp also completed the sale of seven industrial real estate assets in the UK to Mileway, a pan-European last-mile logistics real estate company owned by Blackstone Group, in October.

With the acquisition of the 13 industrial assets in Wales,  Investcorp will "continue to further strengthen" its industrial real estate portfolio across the UK, Tarek AlMahjoub, head of UAE and Oman for Investcorp’s private wealth unit, said.

Investcorp operates in 12 countries across the US, Europe, Gulf and Asia, including India, China and Singapore. The group had $35 billion in total assets under management as of December 31, including assets managed by third-party managers. It employs about 430 people across its offices worldwide.

Investcorp, which counts Abu Dhabi's Mubadala Investment Company as its biggest shareholder, last week reported a 33 per cent jump in first-half net profit on the back of higher asset-based income.

Net profit attributable to equity holders of the parent for the six-month period ending December 31 rose to $63m, while asset-based income increased more than threefold to $45m. Assets under management fees also increased 16 per cent year-on-year to $101m.

The company’s $1.4bn investment activity during the first half of its financial year was driven by two new private equity investments in the US and Europe and two add-on acquisitions, in addition to eight investments in businesses across Asia.