backKing & Spalding has advised Arcapita on a flagship forward-funding investment and partnership with ASMO (a joint venture between Aramco and DHL Supply Chain) to develop a large-scale (1.4 million square meter) logistics and warehousing facility at King Salman Energy Park (SPARK) in Saudi Arabia.
Under the partnership, Arcapita will fund development and retain ownership of the facility, while ASMO will develop, lease, and operate the asset under a 22-year occupational lease. The facility will serve as ASMO's central logistics hub in Saudi Arabia, consolidating warehousing, chemical storage, and support facilities in one integrated complex. It will comprise a 43,000 square metre Grade-A logistics warehouse, over 3,000 square metres of offices and staff facilities, 5,300 square metres of dedicated chemical storage space, and a 1.2 million square metre open yard.
This transaction highlights King & Spalding's market-leading expertise in complex forward-funding development structures across the GCC. The deal required careful integration of development risk, real estate rights, and long-term contracted income to protect the investor and deliver predictable returns.
The team navigated the complex risk allocation between Arcapita as capital provider, the development and contracting parties, and ASMO as long-term occupier, ensuring the structure met institutional-grade standards.
The King & Spalding team advising Arcapita was led by real estate partner Malek Al Rifai and senior associate Alex Barker, with support from senior associate Nick Impey and associate Husni Al Far.