Bahrain’s Arcapita launches $500 million logistics fund in Saudi Arabia

Bahrain’s Arcapita launches $500 million logistics fund in Saudi Arabia

Bahrain-based investment management firm Arcapita Capital, a subsidiary of Arcapita Group, has closed $500 million KSA Logistics Fund III, with participation from an unnamed sovereign wealth fund from the GCC region and other institutional investors.

Arcapita has already deployed a substantial amount of the fund in a sizable portfolio of industrial real estate assets across the manufacturing and warehousing sectors.

The fund aims to enhance Saudi Arabia’s ambitions of becoming a global logistics hub.

Press release: 

Arcapita Capital Company, a subsidiary of Arcapita Group Holdings Limited, announced today 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 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.

This fund further demonstrates Arcapita’s strategy of bringing the firm’s international expertise in industrial real estate to the Kingdom’s