A prominent GCC sovereign wealth fund and other significant institutional investors participated in the SAR 1.8 billion ($500 million) KSA Logistics Fund III closing, which was announced today by Arcapita Capital Company, a division of Arcapita Group Holdings Limited.
A significant portion of the fund has already been invested by Arcapita in a broad portfolio of industrial real estate holdings in the manufacturing and warehousing industries. The company plans to execute on a pipeline of additional assets in key locations throughout Jeddah, Eastern Province, and Riyadh in the upcoming months. In keeping with its built-to-suit strategy, Arcapita will develop properties with long-term off-take agreements with tenants.
This fund is an additional example of Arcapita’s strategy to support the Kingdom’s industrial sector and help it realize its goal of becoming a global hub for logistics by leveraging the company’s worldwide experience in industrial real estate.
Hisham Al Raee, Deputy Chief Executive Officer of Arcapita Group, said: “Today marks an important milestone in our strategic expansion in Saudi Arabia, the largest economy in the MENA region. We currently manage over SAR 3.8 billion ($1 billion) of industrial warehousing assets in KSA and the GCC region, and our investor base includes pension funds, sovereign wealth funds, and financial institutions.
The industrial and logistics sectors are key components of the Kingdom’s Global Supply Chain Resilience Initiative, which aims to attract SAR 40 billion ($10.6 billion) in investments. We look forward to continuing to deploy our expertise in the industrial real estate sector to play a key role in transforming the Kingdom into a global logistics hub.”
Yousif Al Abdulla, Managing Director and Head of MENA Investment at Arcapita Group, also stated: “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. Arcapita Group’s portfolio strategy will leverage opportunities presented by the National Industrial Development and Logistics Program, as well as the Kingdom’s Vision 2030 plan.”
The management team of Arcapita Group has overseen industrial and logistics real estate transactions valued at over SAR 24.3 billion ($6.5 billion) worldwide, with over SAR 5.6 billion ($1.5 billion) in the GCC alone, during the previous 25 years. Arcapita Group has also demonstrated a strong track record of investment in the Kingdom, having made close to SAR 1.5 billion ($400 million) in investments in the last ten years.
