Arcapita Group Holdings, the global alternative investment firm based in Bahrain, today (November 13) announced the launch of ARC UK Industrial Portfolio, a $100 million diversified portfolio of income-generating, multi-let industrial buildings located across the UK, with a focus on energy efficiency upgrades.
This investment is part of Arcapita’s long term strategy in the Real Estate market, which embraces socially-conscious investments.
Under this strategy, Arcapita aims to build a highly diversified portfolio with a tenant base distributed across multiple industries, generating stable cash flows, and providing downside protection during economic downturns.
The targeted properties will have shorter term leases and staggered maturities, allowing for continued mark-to-market rent growth and providing a hedge against inflation.
Arcapita intends to acquire a portfolio of existing assets that have the potential to improve their energy efficiency and to complete capital upgrades to deliver affordable spaces that are compliant with the UK’s proposed environmental targets.
These upgrades are projected to drive occupancy and rent growth, while also resulting in cost savings for tenants and supporting the UK’s net zero path.
Arcapita believes that the combination of attractive pricing, strong occupancy rates and greater demand for affordable, energy efficient space provides a compelling opportunity to acquire such assets at discounts to replacement cost. Arcapita will also apply its proactive management style to deliver durable returns to its clients and investors.
To manage the day-to-day operational aspects of the portfolio, Arcapita is partnering with BCP Capital, a certified B Corporation and sustainability-focused asset manager.
On the strategic move, Chief Investment Officer Martin Tan said: "We are excited about the prospects of this investment, which builds on our $7 billion global industrial and logistics real estate track record."
"We look forward to working closely with BCP Capital to build a sizable portfolio, and aim for this to be seen, in the years to come, as a blueprint for socially-conscious and pragmatic investment in real estate," he stated.
Michael Riccomini, Director, European Real Estate at Arcapita, said: "This represents a cyclical opportunity to buy into resilient industrial properties in markets with attractive supply-demand fundamentals. With occupier and investor expectations for sustainability continuing to rise, our investment will deliver affordable space to meet underserved structural demand."
BCP Capital CEO John Kehoe said: "We are excited to collaborate with Arcapita on this investment and believe this partnership creates significant value for our key stakeholders: tenants, clients, and investors."
"Arcapita’s global reach and track record give them a unique perspective, making them an ideal partner. This investment also represents a significant step in BCP’s growth, and we look forward to making this partnership a true success," he added.
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