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March 7, 2024

King & Spalding advises Arcapita on US$500 million logistics fund in Saudi Arabia

King & Spalding has advised Arcapita to launch ARC KSA Logistics Fund III, a Saudi Arabian domiciled fund that successfully raised SAR 1.8 billion ($500 million), with participation from GCC sovereign wealth funds and other significant institutional investors.

The fund is managed by Arcapita Capital Company, a subsidiary of Arcapita Group Holdings Limited, which obtained an asset management license from the Saudi Arabian Capital Market Authority with the assistance of King & Spalding.

The fund’s strategy is line with the Kingdom of Saudi Arabia’s Vision 2030 and its Global Supply Chain Resilience Initiative, which aims to make Saudi Arabia a location of choice for leading global industrial companies. The fund is targeting investments primarily in the manufacturing and warehousing sectors with a focus on Riyadh, Jeddah, and the Eastern Province. The fund is also expected to follow a build-to-suit approach, whereby properties will be developed with long-term off-take arrangements with tenants.

The King & Spalding team advising Arcapita included James Stull, Nabil A. Issa, Sayf Shuqair, Saud Aldawsari, Husam Alhmary and Husni Al-Far.