November 30, 2015
Al Rajhi Capital and Arcapita 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 six 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 Al Rajhi Capital and Arcapita.
Commenting on the occasion, Gaurav Shah CEO of Al Rajhi Capital, and Atif Abdulmalik, CEO of Arcapita, 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 Al Rajhi Capital's and Arcapita's fund managers in sourcing and acquiring investments for the fund."
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About Al Rajhi Capital:
Established in 2008, Al Rajhi Capital (ARC) is one of the leading providers of financial services in Saudi Arabia, providing a comprehensive range of innovative financial solutions across brokerage, asset management and investment banking. ARC is the top ranking broker and one of the largest asset managers in the KSA. As the investment banking subsidiary of Al Rajhi Bank, ARC benefits from the strength and resources of one of the largest and leading commercial banks in the GCC region. Regulated by the Kingdom's Capital Market Authority (CMA), ARC is a Limited Liability Company organized and existing under the laws and regulations of Saudi Arabia and operates under the Authorized Persons Regulations with license number 07068-37. Further details on ARC can be found at www.alrajhi-capital.com
About Arcapita
Arcapita is a global Shari'ah compliant alternative investment manager, with offices in Bahrain, Atlanta, London and Singapore. Arcapita's principal lines of business are private equity and real estate, and it has a 17 year management track record of over 70 investments with total transaction value in excess of $30 billion.
Further details on Arcapita can be found at www.arcapita.com
Press Release 2015
