Arcapita Launches $500 Million Logistics Fund in Saudi Arabia

Arcapita Launches $500 Million Logistics Fund in Saudi Arabia

Arcapita Capital Company, a subsidiary of Arcapita Group Holdings Limited, has announced the closure of KSA Logistics Fund III, securing SAR 1.8 billion ($500 million) in investments. The fund saw participation from a prominent sovereign wealth fund from the GCC region and other major institutional investors.

The firm has already allocated a significant portion of the fund towards a diverse portfolio of industrial real estate assets, primarily focusing on the manufacturing and warehousing sectors. In the coming months, Arcapita plans to expand its portfolio further, targeting strategic locations in Riyadh, Jeddah, and the Eastern Province. Adopting a built-to-suit approach, properties will be developed with long-term off-take arrangements with tenants.

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

Hisham Al Raee, Deputy Chief Executive Officer of Arcapita Group, emphasized the significance of this milestone, stating, “Today marks an important step in our strategic expansion within Saudi Arabia, the largest economy in the MENA region. With over SAR 3.8 billion ($1 billion) of industrial warehousing assets under management in KSA and the GCC region, our investor base encompasses pension funds, sovereign wealth funds, and financial institutions. The industrial and logistics sectors play pivotal roles in the Kingdom’s Global Supply Chain Resilience Initiative, aiming to attract SAR 40 billion ($10.6 billion) in investments. We are poised to continue deploying our expertise in the industrial real estate sector to contribute to the Kingdom’s transformation into a global logistics hub.”

Yousif Al Abdulla, Managing Director and Head of MENA Investment at Arcapita Group, added, “We anticipate substantial growth in Saudi Arabia’s industrial real estate market over the long term, driven by the rapid expansion of e-commerce and significant government-led investments in infrastructure and the industrial sector. Arcapita Group’s portfolio strategy will capitalize on opportunities presented by the National Industrial Development and Logistics Program, as well as the Kingdom’s Vision 2030 plan.”

Arcapita Group’s management team boasts a track record of managing more than SAR 24.3 billion ($6.5 billion) in industrial and logistics real estate transactions globally, including over SAR 5.6 billion ($1.5 billion) in the GCC region over the past 25 years. Furthermore, the company has established a strong presence in the Kingdom, with nearly SAR 1.5 billion ($400 million) in investments over the past decade.

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