Arcapita Capital Company, a subsidiary of Arcapita Group Holdings Limited, announced the successful closure of KSA Logistics Fund III, securing SR1.8 billion ($500 million) in capital. The fund saw participation from a prominent sovereign wealth fund from the GCC region and other major institutional investors.
With a substantial portion of the fund already deployed, Arcapita has invested in a diverse portfolio of industrial real estate assets spanning manufacturing and warehousing sectors. In the coming months, the firm plans to further expand its footprint by acquiring strategic assets in Riyadh, Jeddah, and the Eastern Province. Additionally, Arcapita will adopt a built-to-suit approach, developing properties with long-term off-take arrangements with tenants.
The launch of KSA Logistics Fund III underscores Arcapita’s commitment to leveraging its international expertise in industrial real estate to bolster Saudi Arabia’s industrial sector and advance its vision of becoming a global logistics hub.
Hisham Al Raee, Deputy Chief Executive Officer of Arcapita Group, hailed the fund’s closure as a significant milestone in the firm’s strategic expansion in Saudi Arabia. Al Raee noted Arcapita’s substantial management of over SR3.8 billion ($1 billion) in industrial warehousing assets across KSA and the GCC region, catering to a diverse investor base comprising pension funds, sovereign wealth funds, and financial institutions.
Al Raee highlighted the pivotal role of the industrial and logistics sectors in Saudi Arabia’s Global Supply Chain Resilience Initiative, aimed at attracting SR40 billion ($10.6 billion) in investments. He expressed Arcapita’s readiness to deploy its expertise to support the Kingdom’s transformation into a global logistics hub.
Yousif Al Abdulla, Managing Director and Head of MENA Investment at Arcapita Group, underscored the anticipated growth of Saudi Arabia’s industrial real estate market. Al Abdulla cited the burgeoning e-commerce landscape and government-led investments in infrastructure and the industrial sector as key drivers. He affirmed Arcapita Group’s strategic alignment with the National Industrial Development and Logistics Program and Vision 2030 plan.
Arcapita Group’s management team boasts a rich legacy of managing over SR24.3 billion ($6.5 billion) in industrial and logistics real estate transactions globally, including SR5.6 billion ($1.5 billion) in the GCC region, over the past 25 years. The firm has a robust track record of investing in Saudi Arabia, with nearly SR1.5 billion ($400 million) in investments over the past decade.
Operating as a licensed financial institution in the Kingdom of Saudi Arabia, Arcapita Capital Company is regulated by the Capital Market Authority (CMA) under license number 32-22237.
