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Bahrain’s Arcapita buys Dubai warehouses for $150m

Arcapita has acquired 10 warehousing facilities in Dubai for approximately $150m, bringing up its UAE logistics portfolio to $250 million

Arcapita spends $150m on logistics assets in Dubai.
Arcapita spends $150m on logistics assets in Dubai.

The Bahrain office of the global investment firm Arcapita has announced that it has acquired a portfolio of 10 warehousing facilities in Dubai, for a total transaction value of approximately $150m.

The newly acquired facilities occupy a total built-up area of more than 120ha, primarily in Dubai Investment Park (DIP).

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

According to a Bahrain News Agency report, Arcapita is utilizing its sector knowledge to acquire assets that are located in close proximity to the Al Maktoum International Airport, the Expo 2020 site, and Dubai’s major transport and logistics arteries.

Approximately 60% 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.

Martin Tan, Arcapita’s Chief Investment Officer, said: "The Dubai logistics market continues to show signs of growth. Not only does one-third of the world’s population live within a four-hour flight from Dubai, but Dubai is also regarded as a global redistribution gateway.

“The manufacturing, transport, and logistics sectors are major contributors to Dubai’s economy, accounting for approximately 22% 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."

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Construction Week - Issue 754
Nov 23, 2019