Arcapita Capital and Flow Progressive Logistics have agreed to develop an 80,000-square-meter mixed-use Class A logistics complex in Riyadh.
Announcing this at the recent Supply Chain and Logistics Conference in Riyadh, Arcapita said it will develop the facility featuring various storage options, including cold storage, dry storage, temperature-controlled facilities, as well as specialised spaces for pharmaceutical and hazardous goods.
Isa Al Khalifa, Director of Real Estate Investments at Arcapita, commented: “We are extremely pleased to expand our partnership with Flow through this new development.
“The Saudi Arabia industrial and logistics market continues to demonstrate positive supply-demand dynamics that are likely to support rental growth in the foreseeable future. This partnership will contribute to meeting the growing demand for modern logistics facilities and services in Riyadh, where demand is outstripping supply particularly when it comes to higher-quality assets.
“Riyadh is positioning itself as a key logistics hub for both regional and international companies making it an attractive destination for investment capital.”
Flow, an end-to-end supply chain management company that provides international shipping, customs clearance, warehousing, transportation, delivery, and reverse logistics, will operate the facility under a long-term lease agreement.
The company operates one of the largest fully automated logistics facilities in the region and has a growing fleet catering to diverse needs.
Achraf Ellili, CEO at Flow, added: “The collaboration with Arcapita is a milestone for Flow as we continue to scale our operations in the Kingdom. The new facilities will allow us to meet the increasing demand for comprehensive supply chain services and offer advanced solutions to our clients in various sectors, including pharmaceuticals and hazardous goods.
“This partnership helps us align with Saudi Arabia’s broader economic goals and play our role in the Kingdom’s transformation.”
The new facility will expand Arcapita’s logistics real estate portfolio in Saudi Arabia. It also supports the government’s efforts to diversify its economy and improve market infrastructure, in line with Saudi Arabia’s Vision 2030.
Arcapita Group currently manages over $1 billion of industrial real estate assets in the GCC, making it one of the largest real estate platforms in the region. The Firm is expected to double its GCC logistics AUM to $2 billion by 2025.
The Group embarked on its GCC industrial strategy in 2010 by establishing a series of funds dedicated to industrial assets. The firm grew its industrial AUM by acquiring a diversified base of properties tenanted by a wide range of occupiers. Today, Arcapita Group’s industrial real estate portfolio across Saudi Arabia, the United Arab Emirates, and the Kingdom of Bahrain consists of a combined built-up area of over 3.5 million square feet across more than 30 properties.
Follow us on
