Arcapita, a Bahrain-based investment firm, announced the successful closing of its KSA Logistics Fund III, securing $500 million for investments in the Saudi Arabian logistics sector. The fund attracted participation from a prominent sovereign wealth fund within the Gulf Cooperation Council (GCC) and other significant institutional investors.
This latest fund marks Arcapita's continued commitment to the Saudi Arabian market, where it already manages over $1 billion in industrial warehousing assets. The firm has already deployed a significant portion of the newly raised capital towards acquiring a portfolio of industrial real estate assets strategically located across the kingdom, focusing on the manufacturing and warehousing sectors.
Commenting on the development, Hisham Al Raee, Deputy Chief Executive Officer of Arcapita Group, highlighted the alignment of the fund's goals with Saudi Arabia's ambitions to become a global logistics hub. He stated, "The industrial and logistics sectors are crucial components of Saudi Arabia's Global Supply Chain Resilience Initiative, which aims to attract significant investments in the sector. We are confident that our expertise in the industrial real estate sector will play a key role in supporting the kingdom's transformation into a global logistics leader."
Arcapita's strategy involves utilizing a "built-to-suit" approach, where they develop properties with long-term lease agreements secured with tenants beforehand. This approach minimizes vacancy risks and ensures stable returns for investors. The firm plans to further expand its portfolio in the coming months by targeting strategic locations within Riyadh, Jeddah, and the Eastern Province.
The KSA Logistics Fund III underscores Arcapita's long-standing presence and experience in the Middle Eastern market. The firm boasts a proven track record in the region, having managed over $6.5 billion in industrial and logistics real estate transactions across the GCC in the past 25 years. Notably, Arcapita has actively invested in Saudi Arabia for over a decade, with a portfolio exceeding $1.5 billion.
With this latest fund, Arcapita positions itself as a key player in propelling the growth of the Saudi Arabian logistics sector, and by extension, contributing to the nation's broader economic diversification goals.