Bahrain-based Arcapita has acquired a seven-property industrial real estate portfolio in Cleveland, Ohio, a move that comes as the Shariah-compliant alternative investment firm expects the industrial warehousing sector to experience growth on the back of demand from tenants in the e-commerce and manufacturing supply chain segments.
The new properties comprise 655,000 square feet of industrial assets, with occupants operating in the logistics, technology and assembly areas, according to a press release. As part of the deal, Arcapita has partnered with a local real estate owner-operator that will serve as the leasing and managing agent. Financial details of the deal were not disclosed.
It’s not Arcapita’s first move in the U.S. this year. In January, it acquired a controlling interest in U.S.-based signage and lighting services firm MC Sign Company in a deal worth in excess of $100 million.
“Expanding our U.S. real estate footprint is a key pillar of our growth strategy,” said Atif Abdulmalik, Arcapita’s CEO, in a statement. “We have good momentum and are excited to expand our portfolio in the sector with additional acquisitions in the months to come.”
The new acquisition is part of Arcapita’s broader strategy of targeting industrial real estate assets in the U.S. in locations in close proximity to major population centers that enjoy strong consumer demand and developed supply chain infrastructure.
Arcapita has a track record of investing in the industrial warehousing sector, with the firm having overseen $2 billion of industrial real estate transactions between the U.S. and Asia, according to Abdulmalik. He reports that Arcapita has previously managed and exited five industrial portfolios comprising more 100 properties.
In addition to Bahrain, Arcapita has offices in London, Singapore and Atlanta, and recently expanded its U.S. team.