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July 2024
AAM Magazine
July 2024
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Arcapita appointed as adviser for HSBC Saudi Arabia's US$150 million GCC fund

Bahrain-based alternative manager Arcapita has been appointed as adviser for HSBC Saudi Arabia’s US$150 million Gulf Cooperation Council (GCC) investment fund, which focuses on logistics assets in the region.

In that role, the company will have to “identify assets and assist in the financing and sale of assets, as well as provide asset management services, structuring, due diligence, monitoring and fund administration”, for the GCC fund, Arcapita says in a statement on January 29. 

The fund primarily targets logistics and warehouse assets in Saudi Arabia and the United Arab Emirates (UAE).

“Our recent transactions highlighted our belief in the potential for the logistics sector in the GCC region and we look forward to working in partnership with HSBC Saudi Arabia and leveraging our extensive experience to source income-generating logistics assets,” according to Arcapita’s Chief Executive Officer Atif A. Abdulmalik.

Martin Tan, Arcapita’s chief investment officer, adds that “the GCC logistics sector provides an attractive cash yield in today’s low interest rate environment, as well as significant potential for capital appreciation”.

“We will continue to leverage our global expertise and build on the 40 real estate transactions, with a value of $15 billion, that we have executed across the Middle East, US, Europe and Asia,” Mr. Tan says.

Arcapita provides alternative investment solutions to shariah-compliant investors, and has completed over 70 deals valued at more than $30 billion, including $350 million worth of logistics transactions in the UAE.

HSBC Saudi Arabia is a joint venture between Saudi British Bank and Hong Kong and Shanghai Banking Corporation (HSBC).