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The facility will feature various storage options, including cold storage, dry storage, temperature-controlled facilities, as well as specialised spaces
Arcapita Capital Company has 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.
The deal will see Arcapita develop an 80,000sqm mixed-use storage complex. The facility will feature various storage options, including cold storage, dry storage, temperature-controlled facilities, as well as specialised 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 Arcapita’s logistics real estate portfolio in Saudi Arabia and support the government’s 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 $10.6bn 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.”
Arcapita Group currently manages over $1bn of industrial real estate assets in GCC, making it one of the largest real estate platforms in the region. The firm is expected to double its GCC logistics AUM to $2bn by 2025. |
