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Arcapita continues global logistics play

The Bahrain-based investment firm has acquired a European logistics warehouse developer - two months after announcing its $1 billion JV with ProLogis to develop and acquire industrial properties in the Middle East.

Arcapita and affiliates have acquired Pinnacle Real Estate, a developer and operator of logistics warehouses in Central and Eastern Europe. Financial terms were of the deal not disclosed. Merrill Lynch’s Global Principal Investment group previously had a majority stake in the industrial developer.

In addition to the 230,000-square-meter portfolio of warehouses, the deal also included close to 1.5 million square meters of land for future development.

Commenting on the transaction, Atif Abdulmalik, Arcapita’s chief executive, said that the acquisition was in, what it believes are, “high growth markets with excellent further appetite for modern and well situated warehousing and distribution facilities,” that fitted well with its existing portfolio of West European logistics warehouses.

The deal takes the firm’s European investment in logistics to more than €1.4 billion ($2.2 billion), representing approximately two million square meters of developed and developable warehouse space, according to Abdulmalik.

In April, the Bahrain-based investor partnered with ProLogis on a $1 billion joint venture, ProLogis Middle East, to target advanced logistics warehouse space in the Gulf Cooperation Council (GCC) region. The joint venture targets the acquisition, financing, development and management of warehousing properties in Saudi Arabia, Kuwait, Bahrain, Oman and Qatar. It expects to break ground on its first developments in the latter half of 2008, with an initial focus on Saudi Arabia.