MANAMA: Mahmood Rafique, Editor: Arbah Capital has acquired a $43m diversified high income producing portfolio of five assets in the growing industrial sector in the United States, with prominent tenants such as Tesla, AT&T and Walmart, in partnership with Brennan Investment Group, who are a leading specialist in the US Industrial sector, having closed more than $15billion worth of US Industrial transactions in the last 10 years.
According to reports from market leading advisors like CBRE and JLL, the US Industrial sector has remained remarkably resilient during the unfortunate Covid-19 pandemic. There have even been signs of upward pressure on pricing due to an increasing forecast for demand in the US Industrial sector, driven by the move to online shopping, the realization that just-in-time stocking levels pose a risk in periods of shock, and the need to reduce reliance on offshore manufacturing especially in China. All these factors lead to an increase in forecast demand for the US Industrial sector, and we believe that the diversified assets that have been acquired, with diversity both in terms of geography across the mid West and in terms of industry sectors, are extremely well positioned to benefit from this. This is testimony to Arbah’s strategic thinking and positioning. “The key philosophy of Arbah is to find for its investors the right growth segments, and to structure investments in those segments with leading partners who have a proven track record. Arbah’s reputation and professionalism attracts best in class partners to offer value added investments to its investors,” Mahmood Al Kooheji, CEO of Arbah Capital, said.
Arbah has partnered with Brennan Investment Group (BIG) who are also a co-investor and Asset Manager. BIG is recognized as the leading manager in the US secondary and tertiary Industrial sector, they manage over 42 million square feet of industrial space in the US across 30 states, and maintain occupancy of over 95%. On sold transactions, they have a track record of over 40% IRR.
“Arbah’s main strategy focuses on acquisition of distinctive assets within excellent locations in defensive sectors like social infrastructure. …which reflects our investment strategy in finding exclusive high-quality opportunities for our investors. It is these types of investments that will broaden the value creation prospects for our investors within the international market and contribute to our journey into becoming a leading Investment Bank in the region. This investment enhances Arbah’s strategic alliances and relationships which further supports its position as an international gateway for the Saudi Arabian and the regional investors market.”
“We are always very sensitive to the needs of the time, and Arbah is aiming to launch other products soon which address the key concerns that we now face and build sustainability for the future. We are currently working to acquire a core social infrastructure asset in the US, another income producing product in a very defensive sector, introducing Purpose Based Student Housing into KSA, and are looking to soon launch a true commodity murabaha fund that will provide liquidity and excellent yield to investors. These products we believe are innovative and in defensive areas, which will provide investors with a degree of stability and comfort, at a time of such great volatility in other markets. “
