Gulf firms launch $500 million property fund

Gulf firms launch $500 million property fund

The fund, launched by Saudi’s Al Rajhi Capital and Bahrain’s Arcapita Bank, has already made a $79.7 million acquisition.

February 22, 2010 4:27 by kippreport

Saudi-based Al Rajhi Capital and Bahrain-based investment firm Arcapita Bank announced on Monday that they have launched a $500 million property fund, called the ARC Real Estate Income Fund. The fund will invest in “high-quality, income-generating real estate assets” in Saudi and the other GCC countries, and will focus on logistics warehouses, healthcare and education related assets, the companies said.

The fund has already completed its first acquisition, a logistics and distribution center in Riyadh, which was bought for $79.7 million. “As the economic downturn shows signs of bottoming out, we are beginning to see good opportunities for investors with available capital for investment,” Jorge Cantonnet, managing director and head of Private Equity at Al Rajhi Capital said in a release. “Early responses from investors have been very positive,” he added.