Riyadh, Saudi Arabia — Arcapita Capital Company (Arcapita), a subsidiary of Arcapita Group, Wednesday announced the closing of KSA Logistics Fund III for SAR 1.8 billion ($500 million), with participation from a leading sovereign wealth fund from the GCC region and other major institutional investors.
Arcapita said in a statement that it has already deployed a substantial amount of the fund in a sizable portfolio of industrial real estate assets across the manufacturing and warehousing sectors.
Over the coming months, the firm expects to execute on a pipeline of further assets situated in strategic locations across Riyadh, Jeddah, and the Eastern Province. Arcapita will also take a built-to-suit approach, whereby properties will be developed with long-term off-take arrangements with tenants.
Hisham Al Raee, deputy CEO of Arcapital Group, said the Group currently manage over SAR 3.8 billion ($1 billion) of industrial warehousing assets in KSA and the GCC region, and its 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,” he said.
Arcapita Group’s management team has managed 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.
