- Arcapita Capital, a Bahrain-based investment management firm and subsidiary of Arcapita Group, has successfully concluded the closure of KSA Logistics Fund III, securing a total of $500 million in investments.
- Arcapita swiftly deploys a significant portion of the fund into a diverse portfolio of industrial real estate assets, focusing on manufacturing and warehousing sectors in key regions of Saudi Arabia.
- Arcapita Group demonstrates commitment to Saudi Arabia’s industrial growth, leveraging its international expertise to develop world-class logistics infrastructure and contribute to the Kingdom’s aspirations of becoming a global logistics hub.
Arcapita Capital Company, a subsidiary of Arcapita Group Holdings Limited, has officially announced the successful closure of KSA Logistics Fund III, securing SAR 1.8 billion ($500 million) in investments. Notable participation includes a leading sovereign wealth fund from the GCC region alongside other significant institutional investors.
The firm has wasted no time in deploying a substantial portion of the fund into a diverse portfolio of industrial real estate assets, focusing primarily on the manufacturing and warehousing sectors. Looking ahead, Arcapita anticipates further deployment as it executes a pipeline of assets strategically located across key regions in Saudi Arabia, including Riyadh, Jeddah, and the Eastern Province. Embracing a built-to-suit approach, the company plans to develop properties with long-term off-take arrangements with tenants.
This milestone fund underscores Arcapita’s commitment to leveraging its international expertise in industrial real estate to bolster the Kingdom’s industrial sector. By facilitating the development of world-class logistics infrastructure, Arcapita aims to support Saudi Arabia’s aspirations of positioning itself as a global logistics hub.
The successful closure of KSA Logistics Fund III marks another significant step in Arcapita’s strategy to contribute to the growth and development of Saudi Arabia’s industrial landscape while simultaneously delivering value to its investors.
Arcapita Group’s Deputy Chief Executive Officer, Hisham Al Raee, highlighted a significant milestone in the company’s expansion strategy within Saudi Arabia, the largest economy in the MENA region. Al Raee emphasized their management of industrial warehousing assets exceeding SAR 3.8 billion ($1 billion) in the Kingdom and the GCC, attracting diverse investors including pension funds, sovereign wealth funds, and financial institutions.
He underscored the industrial and logistics sectors’ pivotal role in Saudi Arabia’s Global Supply Chain Resilience Initiative, aiming for SAR 40 billion ($10.6 billion) in investments. Al Raee expressed eagerness to contribute expertise to propel the Kingdom into a global logistics hub.
Yousif Al Abdulla, Managing Director and Head of MENA Investment at Arcapita Group, projected substantial growth in Saudi Arabia’s industrial real estate market, attributing it to e-commerce expansion and government-led infrastructure and industrial sector investments. He outlined Arcapita Group’s portfolio strategy, leveraging opportunities from the National Industrial Development and Logistics Program and Vision 2030 plan to foster growth.
Arcapita Group’s management team, boasting management of over SAR 24.3 billion ($6.5 billion) in global industrial and logistics real estate transactions, including SAR 5.6 billion ($1.5 billion) in the GCC over 25 years, signifies a wealth of experience. Additionally, their noteworthy investment history in the Kingdom, totalling nearly SAR 1.5 billion ($400 million) over the past decade, reflects a longstanding commitment to Saudi Arabia’s economic advancement.
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Last Updated on March 7, 2024 by Safiya K
