Gulf Construction Online - Arcapita, Rikaz to build logistics park in Riyadh

Saudi Focus

Arcapita and Rikaz officials at the signing ceremony.

Arcapita, Rikaz to build logistics park in Riyadh

01 March 2024

Arcapita Group Holdings, a global alternative asset manager, has announced a strategic collaboration with Rikaz, a prominent large-scale real estate developer in Saudi Arabia, for the development of a top-class logistics park in Riyadh.

The park, named The Node, is designed to meet the specifications of prominent international and regional tenants.

Unveiling the project last month, Arcapita said The Node is a 3-million-sq-m development that is poised to become Riyadh’s premier logistics hub.

The first phase of the project will cover an area of approximately 400,000 sq m that will house ‘Grade A’ warehousing facilities, developed as per global standards by Arcapita and Rikaz for a variety of commercial tenants.

Strategically located in eastern Riyadh, the project will have easy access to King Khalid International Airport, the Second and Third Ring Roads, Khurais, Dammam, and the Eastern Ring Road, thereby serving as a strong node for tenants to service customers in Riyadh, across the kingdom. It aims to generate over 3,000 job opportunities.

Muhannad Buhindi, Managing Director at Arcapita Group, said: “A world-class logistics ecosystem sits at the heart of Saudi Arabia’s Vision 2030, under the auspices of the National Transport and Logistics Strategy. Industrial real estate is a critical platform to help better connect Riyadh to regional and international markets and therefore presents a compelling investment opportunity.”

The Bahrain-based Arcapita currently manages $1 billion of industrial real estate assets in the GCC, making it one of the largest industrial real estate asset managers in the region. The firm is targeting to double its GCC logistics AUM (assets under management) to $2 billion by 2025.

A major player in the Saudi property sector, Rikaz had initiated a series of projects aimed at reshaping the real estate sector, aligning with the goals of Vision 2030.

Presently, its real estate portfolio spans key locations in Saudi Arabia, offering over 40 million sq m across multi asset class with a value of SR12 billion ($3.19 billion), significantly contributing to the evolving urban fabric of the kingdom.