Arcapita closes a SAR 1.8 bn fund to develop KSA’s logistics portfolio

Bahrain-based Sharia-compliant real estate and private equity player Arcapita has closed the SAR 1.8 bn (USD 500 mn) KSA Logistics Fund III, with the round seeing the participation of unnamed institutional investors and a GCC-based sovereign wealth fund, according to a statement. The raised funds will go towards developing the outfit’s KSA logistics portfolio.

Details: Arcapita has already mobilized a significant portion of the raised funds towards a group of real estate investments in Saudi Arabia’s manufacturing and warehousing sectors, the statement said. Arcapita plans to implement a pipeline of new assets strategically located in Riyadh, Jeddah, and the Eastern Province in the coming months, with a “built-to-suit approach” designed to produce long-term offtake agreements with tenants, the statement explained.

Arcapita is already well-established in the region’s logistics sector, with some SAR 3.8 bn in industrial warehousing assets under the company’s management in the GCC, Arcapita Deputy CEO Hisham Al Raee said in the statement. The group’s investors include pension funds, sovereign wealth funds, and financial institutions, Al Raee added.

What they said: “We expect Saudi Arabia’s industrial real estate market to experience substantial growth over the long term, driven by the significant and continued growth of e-commerce across the Kingdom and by strong government-led investment in infrastructure and the industrial sector,” Managing Director and Head of MENA Investment at Arcapita Yousif Al Abdulla said in the statement.

REMEMBER- Demand for warehousing facilities in KSA continues to ramp up as the country undergoes a boom in e-commerce and non-oil industries. The country has approved ambitious plans for warehousing developments at major cities and industrial hubs.