Investcorp Obtains $1B Refi for Industrial Portfolios
More than 14 million square feet of space back the debt.
Investcorp has secured $1 billion in debt to refinance four industrial portfolios totaling roughly 14.4 million square feet across the U.S. The company has no maturities before 2027.
Morgan Stanley led the financing. This deal involves a fund that Investcorp debuted alongside two sovereign wealth funds in 2021. As of last year, the fund had committed more than $1 billion in equity. Additionally, the trio formed a new $526 million venture the previous year.
The four collections include 128 class B properties averaging about 110,000 square feet, spread across prime and high-growth markets, as well as 390,000 square feet of class A product in metro Phoenix and Orlando, Fla.
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Investcorp has acquired some 1,500 assets for a total investment figure of roughly $28 billion since its inception in 1996. Industrial and residential properties make up 98 percent of its U.S. holdings.
Earlier this year, it increased its footprint with the purchase of 27 industrial assets spanning 2.7 million square feet across Minneapolis and Baltimore. The company also sold a collection of 3.5 million square feet just last month. These Midwestern assets traded for $365 million.
Industrial debt markets continue flowing
Industrial loan originations grew 53 percent in the second quarter compared to the previous year, according to a report by the Mortgage Bankers Association. During the same period, the total commercial and multifamily mortgage debt outstanding increased by 1 percent compared to the first quarter.
Loans continued to flow well into the second part of the year. In August, Blackstone landed nearly $1.4 billion to refinance a collection of 67 properties encompassing 9.7 million square feet across 10 states and 16 markets.
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