SC Capital, CapitaLand Investment Seek to Raise $500M for UAE Industrial Fund

Singapore’s SC Capital Partners and Temasek-controlled CapitaLand Investment have launched a co-sponsored UAE industrial development fund, which Mingtiandi understands is targeting a minimum equity raise of $500 million.

The new vehicle will support development of an industrial project in the United Arab Emirates spanning 300,000 square metres (3.2 million square feet) of land and expected to attract more than 50 tenants, the companies said in a release. SC Capital’s industrial partner, THi Holding Management Corp, will act as development manager, asset manager and operator.

SC GCC Real Estate Industrial Development Fund seeks to build a high-quality portfolio as the UAE’s industrial sector experiences growth driven by rising purchasing power, expanding e-commerce and government-led initiatives, according to SC Capital, which is 40 percent owned by SGX-listed CapitaLand Investment.

“The launch of our inaugural GRID fund marks a significant milestone in our expansion strategy,” said SC Capital founder and chairman Suchad Chiaranussati. “The UAE presents compelling opportunities for long-term value creation, underpinned by a visionary national agenda and rapidly evolving industrial ecosystems.”

Bid for Tech Tenants

For GRID’s inaugural project, the partners aim to develop a next-generation industrial park in the UAE’s northernmost Ras Al Khaimah emirate to attract high-tech and smart-manufacturing firms from across Asia, including tenants in fields like electric vehicles, renewable energy and advanced materials.

The fund has a pipeline of development opportunities in Abu Dhabi and Dubai and also plans projects in several locations in Saudi Arabia to align with that kingdom’s Vision 2030 agenda to diversify the economy, according to a separate statement. Later the initiative will expand to other Gulf Cooperation Council markets with the goal of creating a portfolio of income-generating industrial assets across the region.

“CLI’s co-sponsorship of GRID demonstrates our agility in co-creating funds that capture timely opportunities, as the GCC region becomes an increasingly important logistics node in the global supply chain,” said CapitaLand chief operating officer Andrew Lim. “With the combined strengths of CLI, SC Capital Partners and THi across fund management, asset development, asset management and tenant networks, we are well-positioned to connect capital partners with high-quality investment opportunities across geographies.”

The news comes four months after the announcement that Thai financier Suchad would back a newly established boutique advisory firm headquartered in Abu Dhabi with a focus on real assets including commercial properties, hotels and data centres.

Elaeo Partners won the support of the SC Capital boss and Andrew Pettit, co-founder of London-based fund manager Revcap, as the firm seeks to profit from the growing stream of cross-border institutional capital flows between Asia, Europe and the Middle East.

Elaeo was set up by managing partner Kapil Jobanputra, a former Standard Chartered executive who led global real estate advisory and financing at the Asia-focused British bank until earlier this year. Notable deals spearheaded by Jobanputra included Canadian fund manager La Caisse’s $5 billion investment in a port and industrial zone in Dubai, as well as the sale of ICD Brookfield Place, an office tower in Dubai’s financial district.

Mideast Momentum

Long a nexus of outbound capital, the GCC region of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE is gaining as a destination for global property investors. Canadian giant Brookfield recently partnered with Abu Dhabi-based Lunate on a $1 billion joint venture to invest in residential real estate in the Middle East.

In July, China’s JD Property signed a partnership agreement with Abu Dhabi Airports, which operates the Emirate’s Zayed International and other airports, to jointly develop and operate a logistics facility at the ADAFZ Logistics Park in the Abu Dhabi Airports Freezone.

In May, Hong Kong’s Gaw Capital Partners announced its acquisition of a residential building at Mamsha Gardens, a property on Saadiyat Island in Abu Dhabi, for a net purchase price of more than $150 million. That same month, Singapore-based Rava Partners revealed its acquisition of the real estate interest of a Dubai school in a deal valuing the property at $100 million.