Bahrains Arcapita, an investment management firm, has acquired a logistics park in Dubais Al-Quoz industrial area for $100m.
The park is located next to Al-Khail Road. It has nine freehold plots of land, covering an area of approximately 630,000 square feet. The site will have 10 warehousing facilities by the third quarter of this year, the company said in a statement.
The investment aims to capitalise on Dubais status as the Middle Easts commercial and logistics hub.
We are excited about this investment which will provide Arcapita and its investors with stable, recurring income as well as potential capital appreciation, Arcapita chief executive Atif Abdulmalik said.
Logistics is a core area of investment for the company which has managed over $8.1bn in transactions across the global logistics market, including in the US, Europe, Asia and the GCC, he added.
The company has made a successful exit from ARC Real Estate Fund, which had a $360m portfolio that consisted of seven long-term leased retail, warehousing and logistics assets in Riyadh, Jeddah and Dubai.
Arcapita and Al-Rajhi Capital had created the $300m fund in March 2010, aiming to acquire logistics and retail properties in the GCC region, MEED reported on 16 December.
Dubais logistics sector is poised for growth as retail sector is expected to generate demand for warehousing and logistics facilities as approximately nine million square feet of gross leasing space will enter the retail market over the next three years.
Reflecting the demand for quality logistics facilities, average rental rates across industrial locations in Dubai have increased by approximately 20 per cent over the past 20 months, Arcapitas chief investment officer Martin Tan said in the statement. We expect this trend to continue.