Bahrain’s Arcapita Launches $500 Million Logistics Fund in KSA

Bahrain-based investment management firm Arcapita Capital, a subsidiary of Arcapita Group, has recently closed its KSA Logistics Fund III at $500 million, with significant participation from an unnamed sovereign wealth fund from the GCC region along with other institutional investors. This marks a substantial move in Arcapita's strategy to bolster Saudi Arabia's position as a global logistics hub.

“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,” Hisham Al Raee, Deputy Chief Executive Officer of Arcapita Group, tells StartupScene. “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.”

The fund's focus lies in investing in industrial real estate assets within the manufacturing and warehousing sectors. Having already allocated a substantial portion of the fund, Arcapita has built a sizable portfolio of industrial real estate assets. Their plans include further investments in strategic locations across Riyadh, Jeddah, and the Eastern Province. In addition to acquiring existing properties, Arcapita will also adopt a built-to-suit approach, developing properties with long-term off-take arrangements with tenants.

Arcapita Group's management team manages more than $6.5 billion in industrial and logistics real estate transactions globally, with over $1.5 billion specifically in the GCC region over the past 25 years. They have also invested $400 million in the Kingdom over the last decade.