Arcapita, the Bahrain-based private equity and real estate investment manager, has acquired a logistics park in Dubai, UAE, for a total transaction value of approximately $100 million.
The firm has invested in nine freehold plots of land in the Al Quoz Industrial Area, covering approximately 630,000 square feet. The site is located next to Al Khail Road, one of Dubai's main transport routes.
“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,” commented Martin Tan, Arcapita's chief investment officer.
“Reflecting the demand for quality logistics facilities, average rental rates across industrial locations in Dubai have increased by approximately 20 percent over the past 20 months.”
Arcapita has been an active investor in Middle Eastern logistics before, having invested its $259 million ARC Real Estate Income Fund I in the United Arab Emirates and Saudi Arabia's logistics and warehousing market. The firm recently exited the entire fund for $360 million.
Founded in 1997, Arcapita is an international investment firm with four principal areas of business – corporate investment, real estate investment, asset-based investment and venture capital. Arcapita is headquartered in Bahrain and operates from a network of offices in Atlanta, London and Singapore.