Arcapita and Arden Group create $ 800 million real estate JV with plans to grow assets under management to $ 2 billion

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Manama, Bahrain, November 1, 2021 / PRNewswire / – Arcapita Group Holdings (“Arcapita”), the global alternative investment firm and Arden Group, a US real estate investment company, have announced a joint venture to acquire multi-tenant industrial real estate in urban centers in key markets The United States. The new company completed an initial portfolio of properties valued at over $ 550 million, with an additional $ 250 million of properties that are closing in the near future. It is planned to expand the portfolio up to $ 2 billion of gross asset value in the top 25 US industrial markets.

The company’s initial portfolio will be approximately 5 million square feet spread across 18 industrial parks in seven US markets: Atlanta, Charlotte, Columbus, Dallas, Houston, Philadelphia, and Indianapolis.

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “This joint venture is part of our broader industrial real estate strategy now that it is about to close.” $ 5.5 billion in industrial and logistics real estate transactions worldwide for almost twenty years. We look forward to partnering with Arden and make this highly diversified portfolio available to our investors. “

“This niche sector was a thematic investment strategy for Arden and continues to offer attractive cash yields, “said Craig A. Spencer, Chairman and CEO of the Arden Group. “We are excited to partner with Arcapita, a trusted and proven strategic partner who shares our long-term vision for the broader asset class.”

The joint venture aims at infill warehouses that have seen very little new supply due to the limited availability of undeveloped land near metropolitan areas. Given rising demand across the logistics spectrum, rental growth for the multi-tenant subsector is expected to continue. The joint venture’s technology-based operating platform aims to break up the decentralized, local owner groups that characterize this asset class.

“Infill industrial facilities are critical to the US supply chain and have become increasingly important as logistics and business services accelerate,” added Shike Goedar, president and chief investment officer of Arden Logistics Parks. “We intend to capitalize on the strong US demand from a growing variety of tenants by providing institutional-grade facilities in strategic locations.”

“The entire US industrial market is being driven by strong long-term tailwinds and sustained capital inflows, resulting in growing investor demand in the multi-tenant subsector,” said Brian Hebb, Managing Director and Head of Arcapita’s US real estate team. “The aggregation plans for this joint venture will allow us to build a significant market share in a highly fragmented sector. We look forward to having Arcapita’s long-standing presence in the global industrial real estate sector Ardens first-class management team to expand this platform in the long term. “

Gibson, served Dunn & Crutcher as legal advisor to Arcapita and Cozen O’Connor as legal advisor to the Arden Group. Jones Lang LaSalle Securities acted as exclusive financial advisor to Arden Group in connection with the transaction and provided debt and equity financing services to the joint venture.

About Arcapita

Arcapita is a global alternative investment manager with offices in the US, UK, Singapore and an attached office in Bahrain. Arcapita supports wealthy and institutional investors in their search for innovative, high-quality, Sharia-compliant investment opportunities that drive economic growth in the real estate and private equity sectors. Arcapita’s management has more than overseen $ 15 billion in real estate investments in multiple sectors and regions. Further details about Arcapita can be found at www.arcapita.com

About Arden Group

The Arden Group is a vertically integrated real estate investment management company focused on equity and debt investments in the top 25 US markets. Founded in 1989, Arden acquired approximately $ 6 billion of more than managed properties and assets $ 11 billion of commercial real estate assets. In 2012, Arden Group founded Arden Fund Management, their real estate equity and debt fund management business with offices in Philadelphia, New York, Tampa, Miami, Minneapolis, and Newport Beach. Arden Group has been consistently ranked the best private fund manager globally by both Cambridge Associates and Preqin, including Preqin’s # 1 worldwide in 2017, 2018 and 2019. For more information, please visit www.ardengroup.com

SOURCE Arcapita


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