By: Mahmoud Gamal
Dubai – Mubasher: Arcapita has conducted several successful investments this past fiscal year and our real estate team is targeting further acquisitions in the UAE, Saudi Arabia, and the United States in the coming period, Arcapita CEO Atif Ahmed Abdulmalik told Mubasher in an exclusive interview.
Among the investments Arcapita is targeting are warehouses and industrial assets in these markets, he said.
Speaking about the Saudi market, the top official described it as “rich in outstanding investment opportunities,” adding that there were many favourable opportunities and that Arcapita real estate team was already targeting a portfolio of industrial assets in the Kingdom.
Bahrain-based Arcapita seeks to be the world’s leading provider of Shari’ah-compliant alternative investments by generating risk-adjusted returns for its high-net-worth and institutional clients as well as robust profitable growth for its shareholders.
Below is Mubasher’s exclusive interview with Arcapita CEO Atif Ahmed Abdulmalik.
Mubasher: What acquisitions did you complete this year? What is the size of these acquisitions?
Abdulmalik: Arcapita’s investment teams have completed five acquisitions during this past fiscal year, worth a combined transaction value of approximately $520 million. With the completion of these transactions, Arcapita’s investment portfolio is now comprised of 12 investments with an aggregate value of over $1.3 billion. Our investments were carefully selected following due diligence, targeting sectors with sound economic fundamentals and compelling demographics. We are confident our global presence and deep industry relationships with partners in target markets position us well to take advantage of attractive investment opportunities that maximise benefits to shareholders and investors.
Mubasher: Arcapita is always searching for new investments. What is your acquisition pipeline in the short term?
Abdulmalik: Our global investment teams constantly search target markets for promising investment opportunities. We select the best following due diligence, in line with our strategy of diversification by geography and asset class in the real estate and private equity sectors. The aim is to realise current cash yield and distribute to our investors periodically, as well as make capital gains at exit in the medium term. We always have a number of investment transactions under consideration, which we acquire if compatible with Arcapita’s investment strategy and objectives.
Mubasher: Are there any other investments you are targeting at an international level?
Abdulmalik: We have a global presence, giving us the ability to take advantage of investment opportunities in all economically prospering parts of the world. Our investment teams at our offices in Atlanta, Georgia, source suitable investment deals in the US, while our Singapore team selects the best investment opportunities in Southeast Asia, our UK team covers the European Continent, and our Head Office in Bahrain covers MENA in general, and the GCC in particular.
Mubasher: In light of the reforms taking place in the Kingdom of Saudi Arabia, what are your plans for the Saudi market?
Abdulmalik: Saudi Arabia is rich in outstanding investment opportunities. The present economic landscape in the Kingdom, in light of Saudi Vision 2030 to achieve economic development and diversify sources of income, provides many favourable opportunities. We are keen to participate in supporting these goals, using our expertise and track record in the various sectors. Arcapita’s real estate team is currently targeting a portfolio of industrial warehousing and assets in the Kingdom. In addition, many investment opportunities are being considered in the consumer services, education, entertainment and healthcare sectors.
Mubasher: Do you intend to issue bonds or sukuk this year or next year?
Abdulmalik: Arcapita’s business model does not rely on external financing. We fund all our investments using our own capital.
Mubasher: Do you consider listing your shares on GCC, Middle East or International stock markets?
Abdulmalik: This is not part of our medium-term plans.
Mubasher: What are your aspirations and outlook for the next phase?
Abdulmalik: We are constantly analysing our investment portfolio and reviewing the actual valuation of our investment acquisitions and planned exits to maximise returns to shareholders and investors. We also invest in counter-cyclical sectors to minimise investment risks, in spite of geopolitical tensions, uncertainty and volatility in markets around the world. There are undoubtedly positive developments in the region, particularly with the recovery of oil prices and forecasts for growth in GCC and MENA GDPs in the short to medium term. Moreover, the reforms in progress in the GCC are yielding numerous opportunities in various sectors such as tourism, entertainment, hospitality, healthcare and education. Therefore, we are optimistic that the future will carry favourable investment opportunities in our region.
