Bahrain-based Arcapita acquires key US distribution facility

MANAMA: Arcapita Group Holdings, an alternative investments manager, has acquired the Cedardale Distribution Centre, a class A+ distribution facility in Dallas, Texas, leased to FedEx Ground.

The firm which has an affiliated office in Bahrain announced yesterday that the property was constructed in 2018 and is an integral part of FedEx’s distribution network in the southern US.

The FedEx facility is the latest addition to Arcapita’s US industrial real estate portfolio, following the recent acquisition of 16 industrial properties in Cleveland, Ohio and Indianapolis, Indiana.

These acquisitions represent a combined transaction value of more than $200 million and approximately 3m sqft of US industrial real estate space across key distribution markets.

The acquisition is part of Arcapita’s broader US industrial real estate strategy which targets single-tenanted assets leased on a long-term basis and multi-tenanted assets within the last mile and light industrial sectors.

The US industrial real estate sector has proven to be recession resilient with sustained, high occupancy levels during recessionary periods due to the mission-critical nature of warehousing and distribution facilities.

Most recently during the Covid-19 pandemic, the industrial sector significantly outperformed other sectors including office, retail and hotel.

Brian Hebb, head of US real estate at Arcapita, said: “The logistics sector is a key focus area. We have recently completed several acquisitions in the sector and as part of our broader strategy, we are focused on acquiring highly functional properties leased to investment grade tenants on a 10-15-year basis. We look forward to working with our partners to acquire additional assets in the months to come.”

Martin Tan, chief investment officer at the firm, added: “Arcapita has a strong track record of investing in the logistics sector, having managed and exited over $5.5 billion in logistics real estate transactions globally. With the accelerated growth of e-commerce and increasing supply chain sophistication, the demand for modern logistics and warehousing space will grow exponentially. We intend to leverage our experience to capitalise on this growth.”

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