Bahrain-based investment firm Arcapita said on Tuesday it has bought a group of warehousing facilities in Dubai for about $150 million.
The deal raises the total value of its logistics portfolio in the UAE to $250 million, the company said, adding that most of the new assets are in Dubai Investments Park, which is owned by Dubai Investments.
The new portfolio will be comprised of up to ten warehousing facilities occupying a total built-up area in excess of 1.2 million square feet.
Approximately 60 percent of the assets are on a long-term lease basis to reputable firms that have undertaken significant capital improvements, the company said.
It added that the remainder of the assets are comprised of mixed-use facilities that are occupied by high-quality local and regional tenants and enjoy high electrical load capacities.
Atif Abdulmalik, Arcapita’s CEO, said: “We aim to capitalise on the burgeoning logistics sector of the UAE, which is increasingly being driven by the growth of e-commerce and the increase in regional trade to create a diversified logistics platform that covers the entire spectrum of the sector and deliver a stable yield and compelling returns for our investors.”
Martin Tan, Arcapita’s chief investment officer, added: “The Dubai logistics market continues to show signs of growth. Not only does one-third of the world’s population live within a four-hour flight from Dubai but additionally Dubai is regarded as a global redistribution gateway.”