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Fri 21 Oct 2016 12:10 AM

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Saudi's Al Rajhi closes $155m fund to invest in European logistics

Investment company says fund will focus mainly on logistics in western Europe

Saudi's Al Rajhi closes $155m fund to invest in European logistics
(Photo for illustrative purposes only)

Saudi-based Al Rajhi Capital has announced the successful closing of a private placement subscription for a fund focusing on logistics after raising SR581 million ($155 million) in equity.

The five-year closed-ended Al Rajhi European Real Estate Fund will invest in income generating properties, such as warehouses occupied by solid tenants with long-term leases.

The objective of the fund is to provide its investors superior returns with balanced risk, bi-annually distributed current income, in addition to a potential for capital appreciation, Al Rajhi said in a statement.

The main geographic focus of the fund will be western Europe, it added.

Gaurav Shah, CEO of Al Rajhi Capital, said: “This fund marks the commencement of the global expansion of our real estate investment platform. We continue to pursue investment in sectors where Al Rajhi Capital management has built deep expertise.

"The success in asset raising is a testament to both the significant track record that Al Rajhi Capital has built within the logistic real estate space and the continuing strong attributes of the sector."

Al Rajhi Capital said it has managed over $1 billion in transactions across the logistics and community retail space and recently successfully exited a $360 million fund focused on investing in Saudi and UAE logistics.

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