REAL ESTATE INVESTMENT

Overview
Arcapita’s real estate investment team operates out of its offices in London, Atlanta, Bahrain and Singapore. Arcapita acts as a principal and arranger of real estate investments, forming joint ventures with leading specialized real estate operators in selected asset classes. Arcapita forms long-term strategic partnerships with its joint venture partners with the aim of completing multiple transactions over time and in more than one geographic region. The real estate investment team has completed investments in the United States, Europe, the Middle East and Japan. The team has the resources and the experience to expand its geographic focus to other markets such as Eastern Europe, Asia and the NAFTA (North American Free Trade Agreement) region.

Income and Growth
Arcapita structures joint ventures that acquire stabilized properties which generate current income, or undertake development projects which offer the prospect of capital gains. These two distinct investment strategies are executed in partnership with leading operators/developers who co-invest alongside Arcapita, and use their experience to create value through active asset management, efficient and tailored operating systems and/or a well-defined and proven development process.
 
Arcapita’ real estate investments are not restricted to specific sectors or geographical regions.

Investing for Income
In evaluating potential current income investments, Arcapita looks for properties with stable and predictable cash flows, an opportunity for growth in rental rates, a diversified tenant base, restricted supply in the sub-market, a favorable demographic profile, and which have the potential for generating moderate capital gains over a five to ten year horizon. Arcapita tries to identify growing asset classes which are reasonably priced and have the prospect of becoming attractive asset classes for institutional investors. Arcapita aims to build portfolios with the critical mass to make them attractive to institutional investors or the public markets, and benefit from potential capitalization rate compression.

Investing for Growth
In evaluating potential development projects, Arcapita targets sectors that demonstrate strong growth potential supported by fundamental trends such as shifts in demographic trends or changes in supply chain management such as just-in-time delivery. Arcapita targets projects that benefit from existing planning and construction permits but that require capital to execute the physical construction and leasing or sale of space. Areas of particular focus for development include logistics warehouses and residential communities.