Arcapita Group Holdings (Arcapita), Bahrain-headquartered investment firm, has formed a joint venture (JV) with Arden Group, a US real estate investment firm, to acquire multi-tenant industrial properties in urban centers across major markets in the US.
The new investment closed on an initial portfolio of properties valued at more than $550 million, with an additional $250 million of properties closing in the near term. The venture aims to grow its portfolio to up to $2 billion in gross asset value across the top 25 US industrial markets.
The project’s initial portfolio totals approximately five million square feet spread across 18 industrial parks, located in seven US markets, including Atlanta, Charlotte, Columbus, Dallas, Houston, Philadelphia, and Indianapolis.
Atif A. Abdulmalik CEO-Arcapita
“This joint venture is part of our broader industrial real estate strategy, having completed roughly $5.5 billion in industrial and logistics real estate transactions globally for nearly twenty years. We are pleased to partner with Arden and provide our investors with this highly diversified portfolio.”
“This niche industrial sector has been a thematic investment strategy for Arden and continues to provide attractive cash yields. We are pleased to align with Arcapita, a trusted and proven strategic partner, which shares our long-term vision for the asset class more broadly,” said Mr. Craig A. Spencer, Chairman and CEO of Arden Group.
The JV is targeting in-fill warehouses that have experienced very low new supply due to the limited availability of undeveloped land near urban centers. With growing demand across the logistics spectrum, rent growth for the multi-tenant subsector is expected to continue. The technology-enabled operating platform of joint venture aims to disrupt the decentralized, local ownership groups that characterize this asset class.
“The overall US industrial market is driven by powerful long-term tailwinds and sustained capital inflows, generating growing investor demand in the multi-tenant sub-sector. The aggregation plans for this joint venture will allow us to build a sizeable market share within a highly fragmented sector,” said Ms. Brian Hebb, Managing Director and Head of Arcapita’s US Real Estate team.
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