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Arcapita appointed advisor on $150mn HSBC Saudi Arabia 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 $150mn GCC investment fund targeting logistics and warehouse assets in Saudi Arabia and the United Arab Emirates.

Atif A. Abdulmalik

Atif A. Abdulmalik

“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 $3tn 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, eCommerce 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 $15bn, 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 $5.3bn in the GCC, US and Asia. In Saudi Arabia, it has acquired, managed and exited from income-generating logistics properties valued at $400mn, while in the UAE it has completed logistics transactions totalling $350mn, including a recent $150mn stake in a portfolio at Dubai Investment Park.

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