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Arcapita will develop an 80,000 square meter mixed-use storage complex
Arcapita Capital Company, a subsidiary of Bahrain-headquartered global alternative investment firm Arcapita Group Holdings, today (December 16) reached an agreement with Flow Progressive Logistics (Flow) to develop a modern class A logistics complex in Riyadh.
An end-to-end supply chain management company, Flow is a part of Saudi-based Alsulaiman Group.
As per the deal inked during the Supply Chain and Logistics Conference held in Riyadh, Arcapita will develop an 80,000 square meter mixed-use storage complex.
The facility will feature various storage options, including cold storage, dry storage, temperature-controlled facilities, as well as specialized spaces for pharmaceutical and hazardous goods.
Flow, which provides international shipping, customs clearance, warehousing, transportation, delivery, and reverse logistics, will operate the facility under a long-term lease agreement.
This collaboration will expand Arcapitas logistics real estate portfolio in Saudi Arabia and support the governments efforts to diversify its economy and improve market infrastructure, in line with Saudi Arabia’s Vision 2030.
The Ministry of Transport and Logistics Services has been instrumental in driving growth in this sector, and its support continues to encourage private sector participation.
The industrial and logistics sectors are key components of the Kingdom’s Global Supply Chain Resilience Initiative, which aims to attract SAR 40 billion ($10.6 billion) in investments.
Isa Al Khalifa, Director of Real Estate Investments at Arcapita, said: "We are extremely pleased to expand our partnership with Flow through this new development. The Saudi Arabia industrial and logistics market continues to demonstrate positive supply-demand dynamics that are likely to support rental growth in the foreseeable future."
"This partnership will contribute to meeting the growing demand for modern logistics facilities and services in Riyadh, where demand is outstripping supply particularly when it comes to higher-quality assets. Riyadh is positioning itself as a key logistics hub for both regional and international companies making it an attractive destination for investment capital," he added.
Arcapita Group currently manages over $1 billion of industrial real estate assets in GCC, making it one of the largest real estate platforms in the GCC. The Firm is expected to double its GCC logistics AUM to $2 billion by 2025.
Achraf Ellili, CEO at Flow, said: "The collaboration with Arcapita is a milestone for Flow as we continue to scale our operations in the Kingdom. The new facilities will allow us to meet the increasing demand for comprehensive supply chain services and offer advanced solutions to our clients in various sectors, including pharmaceuticals and hazardous goods."
"This partnership helps us align with Saudi Arabia’s broader economic goals and play our role in the Kingdom’s transformation," he stated.
Flow operates one of the largest fully automated logistics facilities in the region and has a growing fleet catering to diverse client needs, positioning it as a leader in end-to-end supply chain services.
Through this partnership, Flow reaffirms its commitment to advancing digital innovation in logistics and creating employment opportunities for local talent, directly aligning with Saudi Arabia’s broader economic goals, he added. |
