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Sunday, May 5, 2024

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Arcapita launches US$100 million industrial portfolio prioritizing energy efficiency

Arcapita Group Holdings a global alternative investment firm, has introduced the ARC UK Industrial Portfolio, a diverse collection of income-generating industrial buildings in the UK worth US$100 million with a focus on upgrading energy efficiency.

This investment is in line with Arcapita’s Shariah compliant long-term strategy in the real estate market, which emphasizes socially conscious investments. The strategy, which builds on the Bahraini firm’s US$7 billion global industrial and logistics track record, aims to create a well-diversified portfolio with tenants from various industries, ensuring stable cash flows and resilience during economic downturns. The targeted properties will have shorter-term leases and staggered maturities, allowing for continuous rent growth and providing protection against inflation.

Arcapita is currently managing US$1 billion in industrial real estate assets, with a view of doubling it to US$2 billion by 2025.

By prioritizing energy efficiency upgrades within the portfolio, Arcapita would be contributing to the UK’s net-zero path and also meet the growing investor preference for responsible and sustainable investment practices.

BCP Capital, a sustainable asset management firm, will be managing the portfolio’s daily operations.

As the impacts of climate change become more apparent and the urgency of addressing these challenges becomes more pressing, UK investors are increasingly recognizing the importance of incorporating sustainability factors into their investment decisions.

According to a report published in 2022 by the Investment Association, over 100 asset managers in the UK have signed up to the UN Principles for Responsible Investment, demonstrating a commitment to integrating ESG considerations into their investment decision-making processes.

“With occupier and investor expectations for sustainability continuing to rise, our investment will deliver affordable space to meet underserved structural demand,” Michael Riccomini, the director of European real estate at Arcapita, said.

This partnership will likely enable Arcapita to leverage BCP Capital’s expertise in sustainable investing, enhance its ability to drive positive change within its portfolio and align itself with the growing demand for sustainable investment options.

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