Arcapita, the global alternative investment firm, said it had acquired a portfolio of income-generating logistics assets in Dubai, UAE, for a total transaction value of $150 million.

This transaction, together with eight warehousing facilities in the Al Quoz area of Dubai acquired by Arcapita last year, will bring the value of its UAE logistics portfolio to $250 million.

The new portfolio comprises up to 10 warehousing facilities occupying a total built-up area in excess of 1.2 million sq ft, primarily in Dubai Investments Park (DIP), the largest integrated mixed-use industrial, commercial and residential zone in the Middle East.

As Dubai continues to consolidate its position as the Middle East’s commercial and logistics hub, Arcapita is utilizing its sector knowledge to acquire assets that are located in close proximity to Al Maktoum International Airport, Expo 2020 site, and Dubai’s major transport and logistics arteries.  
 
Approximately 60 per cent of the assets are on a long-term lease basis to reputable firms that have undertaken significant capital improvements.

The remainder of the assets are comprised of 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.
 
Leveraging its significant experience in the global logistics market, core members of Arcapita’s management team have managed over $5.3 billion in transactions in this sector across the United States, Europe, Asia and the Middle East.  
 
On the acquisition, CEO Atif Abdulmalik said: "We continue to present our investors with attractive investments in sectors where Arcapita’s 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," he stated.
 
Chief investment officer Martin Tan said the Dubai logistics market continues to show signs of growth.

"Not only does one-third of the world’s population live within a four-hour flight from Dubai but additionally Dubai is regarded as a global redistribution gateway," remarked the company official.

The manufacturing, transport and logistics sectors are major contributors to Dubai’s economy, accounting for approximately 22 per cent of Dubai’s 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, he added.-TradeArabia News Service