Global alternative investment firm, Arcapita, acquired a portfolio of income-generating logistics assets in Dubai, for a total transaction value of approximately $150mn.
This transaction, together with eight warehousing facilities in the Al-Quoz area of Dubai acquired by Arcapita last year, will bring the value of Arcapitas UAE logistics portfolio to $250mn.
The new portfolio will comprise up to 10 warehousing facilities occupying a total built-up area in excess of 11ha, primarily in Dubai Investments Park (DIP). As Dubai continues to consolidate its position as the Middle Easts commercial and logistics hub, Arcapita is utilising its sector knowledge to acquire assets that are located in close proximity to Al Maktoum International Airport, Expo 2020 site, and Dubais major transport and logistics arteries, read the company statement.
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 comprises 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.
Atif Abdulmalik, Arcapitas CEO, commented: We continue to present our investors with attractive investments in sectors where Arcapitas management team has significant expertise. We aim to capitalise on the burgeoning logistics sector of the UAE, which is increasingly being driven by the growth of e-commerce and the increase in regional trade to create a diversified logistics platform that covers the entire spectrum of the sector and deliver a stable yield and compelling returns for our investors.
Martin Tan, Arcapitas chief investment officer, said: The Dubai logistics market continues to show signs of growth. The manufacturing, transport and logistics sectors are major contributors to Dubais economy, accounting for approximately 22% of Dubais 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.