Al-Rajhi Capital and Arcapita have announced the successful exit of ARC Real Estate Income Fund for a total transaction value of SR1.35 billion.

Since its launch in 2010, the fund acquired six key high quality, income-generating assets in the logistics, warehousing and retail sectors, in Saudi Arabia and the UAE.

The fund was jointly sponsored by Al Rajhi Capital and Arcapita.

Gaurav Shah, CEO of Al-Rajhi Capital, and Atif Abdulmalik, CEO of Arcapita, said in a joint statement: “We are pleased with the performance of ARC Real Estate Income Fund since our investment five years ago and believe it was the right time to exit the fund to deliver maximum profits for our investors.” They added: “Throughout its term, the fund performed well, maintaining full occupancy on extended term leases to quality tenants across its portfolio of assets.”

The statement said: “In an extended low interest rate environment, the ARC Real Estate Income Fund proved to be an attractive and stable investment opportunity for its investors, delivering an average annualized yield of 7.2 percent, and distributing an annual yield in excess of 9 percent over the last two years.”

They said that the fund delivered around 18 percent growth in net asset value during this term.

“The performance of the fund demonstrates the attractiveness of Saudi Arabia and UAE markets for the logistics sector as well as the expertise of Al-Rajhi Capital’s and Arcapita’s fund managers in sourcing and acquiring investments for the fund,” said the joint statement.

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.

ARC is the top ranking broker and one of the largest asset managers in the Kingdom.

Arcapita is a global Shariah-compliant alternative investment manager, with offices in Bahrain, Atlanta, London and Singapore.