Arcapita and Al Rajhi Capital announced today the successful exit of ARC Real Estate Income Fund for a total transaction value of SAR 1.35 billion. Since its launch in 2010, the fund acquired seven key high quality, income-generating assets in the logistics, warehousing and retail sectors, in the Kingdom of Saudi Arabia and the United Arab Emirates. The fund was jointly sponsored by Arcapita and Al Rajhi Capital.
Commenting on the occasion, Mr. Atif Abdulmalik, CEO of Arcapita, and Mr. Gaurav Shah, CEO of Al Rajhi Capital, said in a joint statement, “We are pleased with the performance of ARC Real Estate Income Fund since our investment five years ago and believe it was the right time to exit the fund to deliver maximum profits for our investors.
Throughout its term, the fund performed well, maintaining full occupancy on extended term leases to quality tenants across its portfolio of assets.
“In an extended low interest rate environment, the ARC Real Estate Income Fund proved to be an attractive and stable investment opportunity for its investors, delivering an average annualized yield of 7.2%, and distributing an annual yield in excess of 9% over the last two years. The fund delivered approximately 18% growth in net asset value during this term. The performance of the fund demonstrates the attractiveness of the KSA and UAE markets for the logistics sector as well as the expertise of Arcapita’s and Al Rajhi Capital’s fund managers in sourcing and acquiring investments for the fund.”