Bahrain's Arcapita Capital secures $500M for Saudi logistics fund

Bahrain-based Arcapita Capital has closed KSA Logistics Fund III, raising $500 million with participation from an unnamed sovereign wealth fund and other institutional investors.

The fund aims to boost Saudi Arabia's aspirations to become a global logistics hub, as per Wamda.

The firm heavily invests in industrial real estate assets within manufacturing and warehousing sectors, with plans for portfolio expansion in key locations such as Riyadh, Jeddah, and the Eastern Province. It will employ a built-to-suit strategy, developing properties with long-term off-take agreements with tenants.

“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. 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," said Hisham Al Raee, Deputy Chief Executive Officer of Arcapita Group.

"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,” he added.

Arcapita Group has managed over SAR 24.3 billion ($6.5 billion) of industrial and logistics property transactions globally over the past 25 years, including over SAR 5.6 billion ($1.5 billion) in the GCC. In addition, over the past ten years, the Group has made investments in the Kingdom of nearly SAR 1.5 billion ($400 million).