Arcapita, the global investment firm, has acquired a portfolio of income-generating logistics assets in Dubai with a total value of approximately US $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 Arcapita’s UAE logistics portfolio to $250 million.
The company will now have up to ten warehousing facilities, occupying a total area in excess of 1.2 million ft2, primarily in Dubai Investments Park. Arcapita says its strategy is to acquire assets that are located in close proximity to Al Maktoum International Airport, the Expo 2020 site, and Dubai’s major transport and logistics arteries.
Approximately 60% of the assets are on a long-term lease to reputable firms that have undertaken significant capital improvements. The remainder of the assets comprise mixed-use facilities that are occupied by local and regional tenants and enjoy high electrical load capacities, a key requirement for many tenants.
Atif Abdulmalik, Arcapita’s chief executive, said, “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.”
The Dubai logistics market continues to show signs of healthy growth. Not only does around 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. The manufacturing, transport and logistics sectors are major contributors to Dubai’s economy, accounting for approximately 22% of Dubai’s GDP.