New York, 9 October 2025 — Global investment bank Morgan Stanley has arranged a $1 billion refinancing for Investcorp, the Bahrain-based alternative asset manager, to restructure debt tied to its expansive U.S. industrial holdings. The transaction covers 128 properties totaling nearly 14 million square feet across multiple high-growth and prime logistics markets.
Portfolio Details
The refinancing spans two large Class B industrial portfolios and two Class A business parks:
- 65 properties across eight established industrial hubs, totaling nearly 7 million square feet.
- 63 properties in six high-growth U.S. markets, also totaling close to 7 million square feet.
- A 220,000-square-foot light industrial park in Phoenix, Arizona.
- A 170,000-square-foot industrial park in Orlando, Florida.
These assets form part of Investcorp’s U.S. real estate platform, which is heavily weighted toward industrial and residential properties.
Market Context
The refinancing comes amid a softening U.S. industrial market. According to Cushman & Wakefield, national vacancy rates are 10% higher than a year ago and 60% above pre-pandemic levels, while leasing volumes fell 3.2% year-on-year in Q3 2025. Asking rents remain flat overall, though regional variations persist — rising in the South and Midwest but slipping in the West and Northeast.
Despite these headwinds, Investcorp’s portfolio has shown resilient performance, benefiting from robust tenant demand and limited new supply. The firm has emphasized its strategy of targeting well-located, less-amenitized assets that continue to attract occupiers seeking cost-effective space.
Strategic Significance
Herb Myers, Investcorp’s Global Head of Real Assets, said the refinancing reflects both the strength of the underlying assets and the long-term growth prospects of the industrial sector. “We continue to see robust tenant demand amidst fewer new deliveries,” he noted, adding that Investcorp will pursue further acquisitions with similar fundamentals.
Investcorp currently manages $60 billion in assets globally, with $11.4 billion in real estate holdings as of June 2025. The firm has been among the top five cross-border buyers of U.S. real estate since 2020, according to Real Capital Analytics.
Outlook
The refinancing provides Investcorp with greater financial flexibility to navigate a shifting industrial landscape while positioning it for continued expansion. For Morgan Stanley, the deal highlights the enduring appeal of industrial real estate as a defensive asset class, even as broader market conditions show signs of strain.
Sources: Bisnow [1]; Commercial Observer [2]; Investcorp [3].
