Arcapita Partners With HSBC Saudi Arabia on $150 Million GCC Logistics Fund
Arcapita, a global leader in Shari’ah-compliant alternative investments, has been appointed as an advisor to HSBC Saudi Arabia. Arcapita will identify assets and assist in the financing and sale of assets, as well as provide asset management services, structuring, due diligence, monitoring and fund administration for HSBC Saudi Arabia’s $150 million GCC investment fund targeting logistics and warehouse assets in Saudi Arabia and the United Arab Emirates.
“Our recent transactions highlighted our belief in the potential for the logistics sector in the GCC region and we look forward to working in partnership with HSBC Saudi Arabia and leveraging our extensive experience to source income-generating logistics assets,” said Atif A. Abdulmalik, Arcapita’s Chief Executive Officer. “As hubs facilitating trade between key international ports, and gateways to Africa’s $3 trillion economy, Saudi Arabia and the UAE are thriving logistics markets with a solid long-term investment outlook.”
The Saudi Arabia and UAE logistics sectors are ranked the third and fifth most attractive within emerging markets, according to the Agility Logistics Market Index.Saudi Arabia is expected to benefit further from Saudi Vision 2030, with increased government spending expected on air and sea port infrastructure. Likewise, the UAE logistics sector is poised to grow as Dubai Expo 2020, and increases in world trade, e-commerce and retail sales, helps Dubai strengthen its position as a global redistribution hub.
“With Saudi Vision 2030 and the resilience and prosperity of the Dubai logistics market, Saudi Arabia and the UAE remain key markets for Arcapita,” said Martin Tan, Arcapita’s Chief Investment Officer. “In terms of real estate investments, the GCC logistics sector provides an attractive cash yield in today’s low interest rate environment, as well as significant potential for capital appreciation. We will continue to leverage our global expertise and build on the 40 real estate transactions, with a value of $15 billion, that we have executed across the Middle East, US, Europe and Asia.”
Headquartered in Bahrain, with offices in Atlanta, London and Singapore, Arcapita has extensive regional experience in logistics, having completed transactions in the sector exceeding $5.3 billion in the GCC, US and Asia. In Saudi Arabia, it has acquired, managed and exited from income-generating logistics properties valued at $400 million, while in the UAE it has completed logistics transactions totaling $350 million, including a recent $150 million stake in a portfolio at Dubai Investment Park.
We operate a flat and participatory management structure, while maintaining a solid capital base and managing business risks. Our approach to business focuses on the values of originality, integrity, transparency, ethical investing and professional excellence, while being disciplined investors and delivering superior returns to our investors and other stakeholders. The backbone of our business supports a carefully cultivated corporate culture that encourages teamwork, innovative thinking, a focused strategy and integrated decision-making. Our business is defined by the quality of our people – our professionals have extensive experience in all market conditions and we strive to recruit and retain the best people.
HSBC is one of the largest banking and financial services organisations in the world, with operations in 66 countries and territories. We aim to be where the growth is, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.