Riyadh – Mubasher:  Al Rajhi Capital announced the successful closing of a private placement subscription for the European Real Estate Fund, after raising $597 million in equity.

"The objective of the fund is to provide its investors superior returns with balanced risk, bi-annually distributed current income, in addition to a potential for capital appreciation. The main geographic focus of the fund will be Western Europe," Al Rajhi Capital reported.

The fund is of five-year period and will invest in income generating properties, such as warehouses occupied by solid tenants with long-term leases.  

“This fund marks the commencement of the global expansion of our real estate investment solutions. We continue to pursue investment in sectors where Al Rajhi Capital management has built deep expertise," Gaurav Shah, CEO of Al Rajhi Capital, commented.

He added saying that the long-term nature of the asset class also makes it ideal for investors seeking to diversify away from bonds while achieving higher returns; besides, the attractiveness of the logistic sector is underpinned by minimal speculative development, strong tenants, long leases, stable recurring income with potential for capital appreciation.

Al Rajhi Capital has managed over $1 billion in transactions across the logistics and community retail space and recently successfully exited a $360 million fund focused on investing in KSA and UAE logistics.