Arcapita buys $150m Dubai logistics assets

Manama : Arcapita, a global alternative investment firm, announced it has acquired a portfolio of income-generating logistics assets in Dubai, UAE, for a total transaction value of approximately $150 million. 

This transaction, together with eight warehousing facilities in the Al-Quoz area of Dubai acquired by Arcapita last year, will bring the value of Arcapita’s UAE logistics portfolio to $250m. 

The new portfolio will comprise up to ten warehousing facilities occupying a total built-up area in excess of 1.2m square feet, primarily in Dubai Investments Park (“DIP”), the largest integrated mixed-use industrial, commercial and residential zone in the Middle East. 

Commenting on the move, Arcapita said in a statement that it is acquiring assets that are located in close proximity to Al Maktoum International Airport, Expo 2020 site, and Dubai’s major transport and logistics arteries.  

Approximately 60 per cent of the assets are on a long-term lease basis to reputable firms that have undertaken significant capital improvements.  The remainder of the assets comprise mixed-use facilities that are occupied by high-quality local and regional tenants and enjoy high electrical load capacities - a key requirement for many tenants.

Arcapita’s management team have managed over $5.3 billion in transactions in this sector across the United States, Europe, Asia and the Middle East, the statement added.  

Atif Abdulmalik, Arcapita’s Chief Executive Officer, commented, “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, said, “The manufacturing, transport and logistics sectors are major contributors to Dubai’s economy, accounting for approximately 22pc of Dubai’s GDP. In the current low interest rate environment, our investors are looking for investments that provide a steady cash yield. 

In addition to providing a steady cash yield, we believe that this investment has the potential to be exited through a REIT listing in one of the regional bourses.”