New Logistics Fund: Arkapita Financial (“Arkapita Financial”), a subsidiary of Arkapita Group Holdings Limited (“Arcapita Group”), announced the successful closing of the ”Third Saudi Logistics Fund” with a value of 1.8 billion riyals (US$500 million), in partnership with one of the largest sovereign wealth funds in the Arabian Gulf region and other major investment institutions.
Arkapita Financial has invested in a substantial portfolio of industrial real estate assets in the manufacturing and warehousing sectors. The company also anticipates launching a range of additional assets in the coming months, distributed across strategic locations in Riyadh, Jeddah, and the Eastern Province. It also employs a bespoke development methodology to create properties that tenants can lease under long-term contracts.
Thus, the fund’s strategy embodies Arkapita’s efforts to leverage its global expertise in the industrial real estate to develop the Saudi industrial sector and contribute to realizing the Kingdom’s aspirations to become a leading global logistics hub.
On this occasion, Hisham Al-Ra’i, Executive Vice President of Arcapita Group, said: “Today marks an important milestone in our expansion strategy in the Kingdom of Saudi Arabia, the largest economy in the Middle East and North Africa region, and a major addition to our real estate portfolio in the industrial warehouse segment in the Kingdom and the GCC countries, which is valued at more than 3.8 billion riyals (1 billion U.S. dollars), thereby delivering optimal returns to our investor base, which includes pension funds, sovereign wealth funds, and financial institutions. Furthermore, the industrial and logistics sectors are considered key components of the National Initiative for Global Supply Chains, which aims to attract investments worth 40 billion Saudi riyals (10.6 billion U.S. dollars), and we look forward to continuing to contribute our expertise in the industrial real estate sector and playing a key role in supporting the Kingdom’s plans and initiatives to transform into a global logistics hub.”
Youssef Al-Abdullah, Executive Director and Head of Investment for the Middle East and North Africa at Arcapita Group, added: “The industrial real estate market in the Kingdom continues on its upward trajectory, as we expect the sector to see high growth rates in the long term, benefiting from the significant and sustained growth of the e-commerce sector across the Kingdom, as well as massive government investments in infrastructure and the industrial sector. Arcapita Group’s portfolio strategy aims to capitalize on the opportunities presented by the National Industrial Development and Logistics Program and Saudi Vision 2030.”
Arkapita Group’s management team has extensive experience spanning more than 25 years, during which it has managed investment transactions in industrial and logistics real estate with a total value exceeding 24.3 billion Saudi riyals (US$6.5 billion), including deals valued at more than 5.6 billion Saudi riyals (US$1.5 billion) in the Arabian Gulf region, Arkapita Group also boasts a proven track record of successful investments in the Kingdom totaling approximately 1.5 billion Saudi riyals (400 million U.S. dollars) over the past ten years.
It is worth noting that Arkapita Financial operates in the Kingdom of Saudi Arabia under a license issued by the Capital Market Authority (CMA) No. 32-22237 to engage in investment management, fund operations, underwriting, and securities advisory services.
