Arcapita buys logistics park in Dubai

Manama: Arcapita, the global investment management firm, announced yesterday that it had acquired a logistics park in Dubai, UAE, for about $100 million.

The investment comprises nine freehold plots of land in the Al Quoz Industrial Area covering about 630000 square feet. The logistics park is strategically located next to Al Khail Road, one of Dubai’s main transport arteries. 

By the third quarter of 2016, the site will consist of ten completed warehousing facilities that will be under a long term master lease with a reputable UAE conglomerate. The investment will capitalise on Dubai’s growing logistics market and will offer premium warehousing facilities to tenants in one of Dubai’s most established and sought after industrial areas.

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “We have managed over $8.1 billion in transactions across the global logistics market, including in the United States, Europe, Asia and the GCC. We are excited about this investment which will provide Arcapita and its investors with stable, recurring income as well as potential capital appreciation.”

Martin Tan, Arcapita’s Chief Investment Officer, said, “Dubai’s 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’s 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. Reflecting the demand for quality logistics facilities, average rental rates across industrial locations in Dubai have increased by approximately 20 per cent over the past 20 months,” he added.