Bahrain's Arcapita acquires $100m logistics park in Dubai

Investment comprises nine freehold plots of land in Al Quoz Industrial Area covering about 630,000 sq ft
By Staff writer
Mon 18 Apr 2016 01:56 PM

Global investment management firm Arcapita has acquired a logistics park in Dubai for a total transaction value of approximately $100 million.

The investment comprises nine freehold plots of land in the Al Quoz Industrial area covering an area of approximately 630,000 square feet, located next to Al Khail Road. 

Arcapita said that by the Q3 this year, the site will consist of 10 completed warehousing facilities that will be under a long term master lease with a reputable UAE conglomerate.

It added that the investment will capitalise on Dubai’s growing logistics market and will offer premium warehousing facilities to tenants in one of Dubai’s most established and sought after industrial areas.

“We continue to pursue investments in sectors where Arcapita’s management team has built significant expertise,” Atif Abdulmalik, Arcapita’s CEO said.

“We have managed over $8.1 billion in transactions across the global logistics market, including in the United States, Europe, Asia and the GCC. In particular, we recently successfully exited a $360 million fund, ARC Real Estate Income Fund I, which was focused on investing in the UAE and KSA’s logistics and warehousing market.  We are excited about this investment which will provide Arcapita and its investors with stable, recurring income as well as potential capital appreciation.”

Martin Tan, Arcapita’s chief investment officer, said Dubai’s logistics market is poised to experience significant growth, driven in large part by its attractive geographical location, well-developed supply chain network, and legislation

“In addition to strengthening domestic spending, Dubai’s growing retail sector is expected to generate significant demand for warehousing and logistics facilities as nine million square feet of gross leasing space enters the retail market over the next three years.

“Reflecting the demand for quality logistics facilities, average rental rates across industrial locations in Dubai have increased by approximately 20% over the past 20 months. We expect this trend to continue, and look forward to delivering attractive returns to our investors through this transaction,” he added.

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