Saudi Arabia’s Al-Rajhi Capital and Bahrain’s Arcapita have sold off a SR1.35bn ($360m) logistics and retail portfolio.

The ARC Real Estate Fund portfolio consisted of seven long-term leased retail, warehousing and logistics assets in Riyadh, Jeddah and Dubai.

Arcapita and Al Rajhi Capital created the $300m fund in March 2010, aiming to acquire logistics and retail properties in the GCC region.

“In an extended low interest rate environment, the ARC Real Estate Income Fund proved to be an attractive and stable investment opportunity for its investors, delivering an average annualised yield of 7.2%, and distributing an annual yield in excess of 9% over the last two years. The fund delivered approximately 18% growth in net asset value during this term,” said Gaurav Shah, CEO of Al Rajhi Capital, and Atif Abdulmalik, CEO of Arcapita, in a joint statement.

US-based JLL was the real estate sales advisor on the transaction.

“JLL reached out to a diverse group of investors from across the GCC and internationally,” Gaurav Shivpuri, head of capital markets for JLL Mena. “JLL’s ability to reach a wide investor pool resulted in significant interest for the portfolio which confirmed strong investor interest in income producing real estate, despite the general perception of market weakness in the region.”

Arcapita divested of a $700m real estate investment in Qatar and over $2bn of investments in the US in 2015.

The investment management firm agreed to sell off $7bn of assets in a restructuring plan after filing for bankruptcy in 2012.

However, Bahraini sovereign wealth fund Mumtalakat acquired a 15 per cent stake in 2014. Following this, Arcapita acquired the $200m Saadiyat Beach Residences in Abu Dhabi earlier in 2015.