Arcapita Group Holdings Limited (Arcapita), the global alternative investment firm, has announced the launch of the ARC UK Industrial Portfolio (the Portfolio), a $100 million diversified portfolio of income-generating, multi-let industrial buildings across the UK, with a focus on energy efficiency upgrades.
This investment aligns with Arcapita’s long-term strategy in the Real Estate market, emphasizing socially-conscious investments. The strategy aims to build a highly diversified portfolio with tenants spanning multiple industries, generating stable cash flows, and providing resilience during economic downturns. The targeted properties will feature shorter-term leases and staggered maturities, facilitating continued mark-to-market rent growth and offering a hedge against inflation.
Arcapita plans to acquire a portfolio of existing assets with potential energy efficiency improvements and complete capital upgrades to provide affordable, environmentally compliant spaces. These upgrades are expected to drive occupancy and rent growth while delivering cost savings for tenants and supporting the UK’s net-zero goals.
The combination of attractive pricing, strong occupancy rates, and increasing demand for affordable, energy-efficient space creates a compelling opportunity to acquire such assets at discounts to replacement cost, according to Arcapita. The firm will apply its proactive management style to deliver lasting returns to clients and investors.
To manage the day-to-day operational aspects of the portfolio, Arcapita is partnering with BCP Capital, a certified B Corporation and sustainability-focused asset manager.
Martin Tan, Arcapita’s Chief Investment Officer, expressed excitement about the investment, envisioning it as a blueprint for socially-conscious and pragmatic real estate investment. Michael Riccomini, Director, European Real Estate at Arcapita, highlighted the opportunity to invest in resilient industrial properties with attractive supply-demand fundamentals.
John Kehoe, BCP Capital’s Chief Executive, expressed excitement about the collaboration, citing the significant value it creates for stakeholders and considering Arcapita an ideal partner with its global reach and track record. The investment marks a significant step in BCP’s growth, and the partnership is anticipated to be a true success.