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27 Feb 2026

King & Spalding Advises Arcapita on Forward-Funding and Partnership with ASMO for Major Logistics Facility at King Salman Energy Park

"King & Spalding advised Arcapita on a forward-funding investment and 22-year occupational lease partnership with ASMO (an Aramco–DHL Supply Chain JV) to develop a 1.4 million sqm logistics and warehousing complex at King Salman Energy Park (SPARK) in Saudi Arabia; Arcapita will fund and own the asset while ASMO will develop, lease and operate it."

King & Spalding advised Arcapita on a forward-funding investment and partnership with ASMO, the Aramco–DHL Supply Chain joint venture, to develop a major logistics and warehousing facility at King Salman Energy Park (SPARK) in Saudi Arabia. Under the partnership, Arcapita will fund the development and retain ownership of the facility, while ASMO will develop, lease and operate the asset under a 22-year occupational lease. The facility is intended to serve as ASMO's central logistics hub in Saudi Arabia, consolidating warehousing, chemical storage and support facilities in a single integrated complex. The development covers approximately 1.4 million square metres and comprises a 43,000 square metre Grade-A logistics warehouse, more than 3,000 square metres of offices and staff facilities, 5,300 square metres of dedicated chemical storage space and a 1.2 million square metre open yard. The transaction underscores King & Spalding's market-leading expertise in complex forward-funding development structures across the GCC. The deal required careful integration of development risk, real estate rights and long-term contracted income to protect the investor and deliver predictable returns. The team navigated the allocation of development, contracting and occupancy risks between Arcapita as capital provider, the development and contracting parties, and ASMO as long-term occupier, ensuring the structure met institutional-grade standards. King & Spalding represented Arcapita with a team composed by: Malek Al Rifai (Real Estate Partner), Alex Barker (Senior Associate), Nick Impey (Senior Associate) and Husni Al Far (Associate).
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