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Eye of Dubai
Business & Money | Wednesday 21 February, 2024 9:13 am |
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Arcapita and RIKAZ to develop world class logistics park in Riyadh

Arcapita Group Holdings Limited (“Arcapita" or "the Firm"), the global alternative asset manager, and RIKAZ, a prominent large-scale real estate developer in Saudi Arabia, today announced a partnership to collaborate on the development of a logistics park called “The Node” in Riyadh, which is designed to meet the specifications of prominent international and regional tenants.   

 

The Node is a 3 million square meter (“sqm”) 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 sqm that will house ‘grade A’ warehousing facilities, developed according to global standards by Arcapita and RIKAZ for a variety of commercial tenants. The project is strategically located in eastern Riyadh, with 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 and is anticipated 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.” 

 

Khalid bin Hassan Al-Qahtani, Chairman and CEO of RIKAZ said: “At RIKAZ, we firmly believe in the power of strategic partnerships. This collaboration aligns seamlessly with RIKAZ’s 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 5 billion Saudi Riyals. 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.”

 

Arcapita 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 embarked on its GCC industrial strategy in 2010 by establishing a series of funds dedicated to industrial assets. The Firm 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 United Arab Emirates, consists of a combined built-up area of over 3.5 million square feet across over 30 properties, leased to over 80 local, regional, and global tenants.

 

RIKAZ 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 square meters across multi asset class with a value of SAR 12 billion, significantly contributing to the evolving urban fabric of the Kingdom.

 

This pivotal agreement reflects RIKAZ's commitment to leveraging the experiences of global leaders, positioning itself as a pioneer in the region's real estate development. A milestone in the company's expansion strategy within the Saudi market, this partnership aligns with RIKAZ's vision of collaborating with major investors to shape the Kingdom's real estate future.

 

 

 

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