King & Spalding Advised Arcapita On Forward Funding And Partnership With ASMO At SPARK

King & Spalding advised Arcapita on forward-funding partnership with ASMO at SPARK

The global law firm King & Spalding has advised Arcapita on a flagship forward-funding investment and partnership with ASMO (a joint venture between Saudi Aramco and DHL Supply Chain) to develop a large-scale 1.4 million square metre 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 will serve as ASMO’s central logistics hub in Saudi Arabia, consolidating warehousing, chemical storage, and support facilities into one integrated complex.

The project will comprise a 43,000 square metre Grade-A logistics warehouse, more than 3,000 square metres of office 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 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 streams to protect the investor and ensure predictable returns. The team also navigated intricate risk allocation among Arcapita as capital provider, the development and contracting parties, and ASMO as long-term occupier, ensuring the structure met institutional-grade standards.

The King & Spalding team advising Arcapita was led by Malek Al Rifai (Partner) and Alex Barker (Senior Associate), with support from Nick Impey (Senior Associate) and Husni Al Far (Associate).

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