Manama, Nov. 1 (BNA): Arcapita Group Holdings (“Arcapita”), the global alternative investment firm, and Arden Group, a US real estate investment firm, have announced a joint venture to acquire multi-tenant industrial properties in urban centres. Across major markets in the US.
The new project 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. Plans aim to grow the portfolio to reach $2 billion in total asset value across the 25 largest industrial markets in the United States.
The project’s total initial portfolio is approximately five million square feet spread across 18 industrial parks, located in seven US markets: Atlanta, Charlotte, Columbus, Dallas, Houston, Philadelphia, and Indianapolis.
Atif Abdulmalik, CEO of Arcapita, commented: “This joint venture is part of our broader industrial real estate strategy, having completed nearly $5.5 billion in industrial and logistical real estate transactions globally for nearly twenty years. We are pleased to partner with Arden and provide our investors with this highly diversified portfolio.”
Craig A. said: Spencer, Chairman and CEO of the Arden Group: “This niche industrial sector has been an objective investment strategy for Jordan and continues to provide attractive cash returns.”
“We are pleased to be aligned with Arcapita, a trusted and proven strategic partner who shares our long-term vision for the broader asset class.”
The joint venture targets packing warehouses that have experienced a significant reduction in new supply due to the limited availability of undeveloped land near urban centres. With demand growing across the logistics spectrum, rental growth for the multi-tenant sub-segment is expected to continue. The joint venture’s technology-based operating platform aims to disrupt the decentralized local ownership pools that characterize this asset class.
“Infill’s industrial facilities are critical to the US supply chain and are becoming increasingly important as logistics and trade accelerate,” adds Shike Goedar, President and Chief Investment Officer, Arden Logistics Parks.
“We intend to take advantage of strong US demand from a growing diverse group of tenants by providing quality, institutional facilities in strategic locations.”
“The overall US industrial market is driven by strong long-term tailwinds and continued capital inflows, driving investor demand in the multi-tenant sub-sector,” said Brian Hebb, managing director and head of the US real estate team at Arcapita.
“The assembly plans for this joint venture will allow us to build a significant market share within a highly fragmented sector. We look forward to combining Arcapita’s long-standing presence in global industrial properties with Arden’s top management team to grow this platform for the long term.”
Gibson, Dunn, and Crocher acted as legal counsel for Arcapita and Cosin O’Connor served as legal counsel for the Arden Group. Jones Lang LaSalle Securities acted as the exclusive financial advisor to Arden Group in connection with the transaction and provided debt and equity financing services for the joint venture.
FKN