Wednesday 17 April 2024
 
»
 
»
400,000 sqm WAREHOUSING UNITS

Arcapita, Rikaz to build top-class logistics park in Riyadh

RIYADH, February 20, 2024

Arcapita Group Holdings Limited, a global alternative asset manager, has announced a strategic collaboration with Rikaz, a prominent large-scale real estate developer in Saudi Arabia, for the development of a top-class logistics park - The Node - in capital Riyadh, which is designed to meet the specifications of prominent international and regional tenants.   
 
Unveiling the project today (February 20), Arcapita said The Node is a 3-million-sq-m development that is poised to become Riyadh’s premier logistics hub. 
 
The first phase of the project will cover an area of approximately 400,000 sq m that will house ‘grade A’ warehousing facilities, developed as per global standards by Arcapita and Rikaz for a variety of commercial tenants. 
 
Strategically located in eastern Riyadh, the project will have easy access to King Khalid International Airport, the Second and Third Ring Roads, Khurais, Dammam, and the Eastern Ring Road, thereby serving as a strong node for tenants to service customers in Riyadh, across the kingdom. It is likely to generate over 3,000 job opportunities.
 
Muhannad Buhindi, Managing Director at Arcapita Group and CEO of Arcapita Capital Company said: "A world-class logistics ecosystem sits at the heart of Saudi Arabia’s Vision 2030, under the auspices of the National Transport and Logistics Strategy. Industrial real estate is a critical platform to help better connect Riyadh to regional and international markets and therefore presents a compelling investment opportunity."
 
"With an extensive track record of successful industrial and logistics real estate investments in Saudi Arabia and globally, Arcapita is well positioned to take an active role in developing the kingdom’s logistics ecosystem. We are delighted to work with an experienced developer such as Rikaz on this opportunity and are confident that this partnership will enable us to develop a high-end logistics platform for world-class regional and international tenants," he stated. 
 
The Bahrain-based company currently manages $1 billion of industrial real estate assets in the GCC, making it one of the largest industrial real estate asset managers in the region. The firm is targeting to double its GCC logistics AUM to $2 billion by 2025.  
 
Arcapita had embarked on its GCC industrial strategy in 2010 by establishing a series of funds dedicated to industrial assets. The company grew its AUM, by acquiring a diversified base of properties tenanted by a wide range of occupiers including blue-chip international companies, regional leaders, and local players. 
 
Today, Arcapita’s logistics real estate portfolio, principally across Saudi Arabia and the UAE, consists of a combined built-up area of over 3.5 million sq ft across over 30 properties, leased to over 80 local, regional, and global tenants, he added.
 
Khalid bin Hassan Al Qahtani, the Chairman and CEO of Rikaz said: "At Rikaz, we firmly believe in the power of strategic partnerships. This collaboration aligns seamlessly with its expansion strategy by fostering partnerships with highly respected institutions like Arcapita. It underscores our commitment to tapping into the significant real estate development in Saudi Arabia, in harmony with the ambitious Vision 2030."
 
"We are preparing to launch eight new projects during the current year with a total investment of up to SR5 billion ($1.3 billion). By leveraging this strategic geographic location and the expansive area to facilitate innovative industrial & logistical projects, we firmly believe The Node will play a pivotal role in helping reshape the business landscape in the region," he added.
 
A major player in the Saudi property sector, Rikaz had initiated a series of projects aimed at reshaping the real estate sector, aligning with the goals of Vision 2030. 
 
This has led to the steady expansion of its portfolio by acquiring strategically located properties featuring a mix of residential, commercial, and entertainment projects, serving as hubs to a broad spectrum of individuals, leading regional entities, and international companies. 
 
Presently, Rikaz's real estate portfolio spans vital locations in Saudi Arabia, offering over 40 million sq m across multi asset class with a value of SAR12 billion ($3.19 billion), significantly contributing to the evolving urban fabric of the kingdom.-TradeArabia News Service



Tags:

More Construction & Real Estate Stories

calendarCalendar of Events

Ads