Arcapita, a global investment management firm, announced Monday that it 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. The logistics park is located next to Al-Khail Road, one of Dubai鈥檚 main transport arteries.
By Q3, 2016, the site will consist of 10 completed warehousing facilities that will be under a long-term master lease with a reputable UAE conglomerate. The investment will capitalize on Dubai鈥檚 growing logistics market and will offer premium warehousing facilities to tenants in one of Dubai鈥檚 most established and sought-after industrial areas.
Arcapita鈥檚 CEO Atif A. Abdulmalik commented: 鈥淲e continue to pursue investments in sectors where Arcapita鈥檚 management team has built significant expertise. 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鈥檚 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.鈥�
Arcapita鈥檚 Chief Investment Officer Martin Tan said: "Dubai鈥檚 logistics market is poised to experience significant growth, driven in large part by its attractive geographical location, well developed supply chain network, and supportive legislation, which collectively make it an ideal supply and redistribution gateway. In addition to strengthening domestic spending, Dubai鈥檚 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.鈥�