Bahrain-based Arcapita Initiates USD500 Million Logistics Fund in Saudi Arabia

Bahrain-based Arcapita Initiates USD500 Million Logistics Fund in Saudi Arabia

– Arcapita Capital Company closes KSA Logistics Fund III, securing SAR 1.8 billion ($500 million) with participation from GCC sovereign wealth funds and institutional investors.

– Deployment of funds targets industrial real estate assets across Riyadh, Jeddah, and the Eastern Province, emphasizing a built-to-suit approach for long-term tenant arrangements.

– Arcapita Group aims to leverage its global expertise to support Saudi Arabia’s industrial sector, aligning with the Kingdom’s vision of becoming a prominent global logistics hub.

Arcapita Capital Company, a subsidiary of Arcapita Group Holdings Limited, has announced the successful closure of KSA Logistics Fund III, securing US$500 million in funding.

Leading sovereign wealth funds from the GCC region and other prominent institutional investors have participated in this endeavor.

The deployment of a significant portion of the fund has already been initiated, focusing on a diverse portfolio of industrial real estate assets within the manufacturing and warehousing sectors. 

Arcapita plans to continue this momentum by targeting additional assets strategically positioned across Riyadh, Jeddah, and the Eastern Province. 

Additionally, the firm intends to adopt a built-to-suit approach, developing properties with long-term off-take arrangements with tenants.

This fund underscores Arcapita’s commitment to leveraging its international expertise in industrial real estate to bolster the Kingdom’s industrial sector and facilitate its vision of becoming a global logistics hub.

Hisham Al Raee, Deputy Chief Executive Officer of Arcapita Group, emphasized the significance of this milestone, highlighting the firm’s substantial management of industrial warehousing assets in KSA and the GCC region, totaling over US$1 billion. 

Al Raee also pointed out the diverse investor base, which includes pension funds, sovereign wealth funds, and financial institutions, reflecting Arcapita’s strong presence in the market.

Yousif Al Abdulla, Managing Director and Head of MENA Investment at Arcapita Group, expressed optimism about Saudi Arabia’s industrial real estate market’s long-term growth prospects. He cited factors such as the expanding e-commerce landscape and government-led investments in infrastructure and the industrial sector as key drivers.

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