Al-Rajhi Capital, Arcapita form US$500m property fund

Al-Rajhi Capital, the investment unit of Al-Rajhi Bank, and Arcapita Bank bought a warehouse in Riyadh as they set up a US$500 million property fund to seek investments in the Persian Gulf.

The ARC Real Estate Income fund will invest in warehouses, healthcare centers and education-related assets in Saudi Arabia and other Persian Gulf countries, the two companies said in an e-mailed statement today.

Savola Al Azizia United Co, Saudi Arabia’s second-largest food producer, announced the sale of the warehouse in Riyadh for US$79.7 million in January.

By Bloomberg