Al Rajhi Capital, one of the largest investment firms in Saudi Arabia, has announced the successful closing of a private placement subscription for the Al Rajhi European Real Estate Fund focusing on logistics after raising SAR 581 Million (USD 155 Million) in equity.
The five-year closed-ended fund will invest in income generating properties, such as warehouses occupied by solid tenants with long-term leases. The objective of the fund is to provide its investors superior returns with balanced risk, bi-annually distributed current income, in addition to a potential for capital appreciation. The main geographic focus of the fund will be Western Europe.
Mr. Gaurav Shah, CEO of Al Rajhi Capital, said: “This fund marks the commencement of the global expansion of our real estate investment platform. We continue to pursue investment in sectors where Al Rajhi Capital management has built deep expertise. The success in asset raising is a testament to both the significant track record that Al Rajhi Capital has built within the logistic real estate space and the continuing strong attributes of the sector”.
Mr. Abdulaziz Al-Sabt, Brokerage and Shared Services Director, Al Rajhi Capital, added: “The attractiveness of the logistic sector is underpinned by minimal speculative development, strong tenants, long leases, stable recurring income with potential for capital appreciation. The continuing trend towards online sales is expected to accelerate the need for good quality distribution networks which translates into demand for warehouses and other logistics properties near trade routes such as ports and airports".
Al Rajhi Capital has managed over USD 1 Billion in transactions across the logistics and community retail space and recently successfully exited a USD 360 Million fund focused on investing in KSA and UAE logistics.
Established in 2008, Al Rajhi Capital is one of the leading providers of financial services in Saudi Arabia, providing a comprehensive range of innovative financial solutions across brokerage, asset management and investment banking. Al Rajhi Capital is the top ranking broker and one of the largest asset managers in the KSA.