Arcapita and Arden Group Launch $ 800 Million Real Estate Joint Venture, Plan to Increase Assets Under Management to $ 2 Billion

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Manama, Bahrain, November 1, 2021 / PRNewswire / – Arcapita Group Holdings (“Arcpita”), the global alternative investment firm, and Arden Group, a US real estate investment firm, have announced a joint venture to acquire multi-tenant industrial properties in urban centers in the main markets of United States. The new venture closed on an initial portfolio of properties valued at over $ 550 million, with a supplement $ 250 million of short-term closing properties. It is planned to increase the portfolio up to $ 2 billion in gross value of assets in the 25 main US industrial markets.

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

Atif A. Abdulmalik, Chairman and CEO of Arcapita, said: “This joint venture is part of our overall industrial real estate strategy, having completed approximately $ 5.5 billion in industrial and logistics real estate transactions around the world for almost twenty years. We are happy to partner with Arden and offer our investors this very diversified portfolio. “

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

The joint venture targets infill warehouses which experienced very low new supply due to the limited availability of undeveloped land near urban centers. With growing demand across the logistics spectrum, rental growth for the multi-tenant sub-sector is expected to continue. The joint venture’s technology operating platform aims to disrupt the decentralized and local ownership groups that characterize this asset class.

“Infill industrial facilities are critical in the US supply chain and have become increasingly important given the acceleration of logistics and commercial services,” adds Shike Goedar, President and Chief Investment Officer of Arden Logistics Parks. “We intend to capitalize on strong US demand from a growing variety of tenants by providing institutional grade facilities in strategic locations.”

“The US industrial market as a whole is being driven by strong long-term tailwinds and sustained capital inflows, generating growing investor demand in the multi-tenant sub-sector,” said Brian Hebb, Managing Director and Head of Arcapita’s US Real Estate Team. “The aggregation plans of this joint venture will allow us to gain significant market share in a very fragmented sector. We look forward to combining Arcapita’s long-standing presence in global industrial real estate with from Arden best-in-class management team to develop this platform for the long haul. “

Gibson, Dunn & Crutcher served as legal counsel for Arcapita and Cozen O’Connor served as legal counsel for 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 affiliates office at Bahrain. Arcapita helps institutional and high net worth investors find innovative and high quality Shari’ah compliant investment opportunities that drive economic growth in the real estate and private equity sectors. Arcapita management oversaw more than $ 15 billion in real estate investments in several sectors and geographic areas. You can find more details about Arcapita on www.arcapita.com

About the Arden Group

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 properties and assets under management in excess of $ 11 billion commercial real estate assets. In 2012, Arden Group created Arden Fund Management, its real estate and debt investment fund management business with offices in Philadelphia, New York, Tampa, Miami, Minneapolis, and Newport Beach. Arden Group has been consistently ranked globally as one of the best private fund managers by Cambridge Associates and Preqin, including Preqin’s # 1 global ranking in 2017, 2018 and 2019. For more information, visit www.ardengroup.com

SOURCE Arcapita


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