Arcapita acquires Pinnacle - Emirates24|7

Arcapita acquires Pinnacle


Arcapita Bank and its affiliates have completed the acquisition of Pinnacle Real Estate, a developer and operator of logistics warehouses in Central and Eastern Europe.

The transaction includes an existing portfolio of leased warehouses of approximately 230,000 square metres, as well as a land bank of nearly 1.5 million square metres for future development, the bank said in a statement yesterday.

The majority shareholder prior to the acquisition was Merrill Lynch through its Global Principal Investments (GPI) group.

Pinnacle was founded seven years ago, and in that time, the company has grown into one of the leading developers in logistics in its markets of Central and Eastern Europe. Pinnacle has offices in the Czech Republic, Poland and Slovakia, and is well placed to benefit from the positive economic development and the build out of distribution networks in Central and Eastern Europe. Atif A Abdulmalik, Arcapita's Chief Executive Officer, said: "With its growing footprint in Central and Eastern Europe, we are very pleased to have added Pinnacle to our European real estate portfolio. Pinnacle has quickly built up an attractive mix of yielding and developmental assets to become a dominant developer in what we believe are high growth markets with excellent further appetite for modern and well situated warehousing and distribution facilities."

Arcapita's acquisition of Pinnacle solidifies Arcapita's position as a major investor in industrial real estate in Europe, and the transaction joins the recent joint venture agreement with Prologis to form Prologis Middle East, which will develop and manage up to $1bn (Dh3.67bn) of modern logistics warehouses in Saudi Arabia and the rest of GCC, estimated to total over one million square metres.

Arcapita has also previously partnered with Prologis in the United States, where it invested in 79 fully leased assets across the country.