The new warehouses, some of which are specially designed to store time-sensitive/perishable products, are located in purpose-built logistics zones in the cities of Riyadh and Dubai. According to GFH, the assets are mainly leased to “a diversified mix of high calibre, blue chip, international and regional tenants”.

GFH’s deal reflects the continuing strong growth opportunities in both Saudi Arabia’s and the UAE’s non-oil sectors and rapid growth in retail sales and ecommerce activities. While in the UAE, this sector of the nation’s economy is expected to register growth of 3% this year and 4% in 2024, in Saudi Arabia a 5.9% growth is expected this year and 4% in 2024.

Moreover, GFH believes the Saudi Arabia government’s Vision 2030 plan and the recently announced logistics master plan, which calls for the development of 59 logistics centres with a total area of more than 100M m² will transform its economy and transition the country into a global trading hub.

“We’re pleased to announce the completion of the acquisition of this portfolio of logistics real estate assets in Saudi Arabia and the UAE,” said Nael Mustafa, CEO of GFH Partners. “Combining high-quality, income-generating facilities and development opportunities, the acquisition is well-positioned to capture opportunities arising from the current expansion of the Gulf Cooperation Council (GCC) logistics sector.

“[This is so] particularly in Saudi Arabia, where the Kingdom’s Vision 2030 is driving the rapid modernisation and development of the country’s transportation and logistics industry to diversify its economy and shift its dependency away from the oil industry. The acquisition also leverages GFH Partners’ deep global experience in the sector that has seen us build an exceptional capability and portfolio of blue-chip assets across the GCC, US, UK and Europe.” 

In addition to the acquisition, GFH intends investing in its existing GCC portfolio. “We aim to rapidly expand our GCC logistics real estate platform to SAR1B (US$250M) over the next 12-18 months,” explained Mustafa. “We will build on the growth from favourable demographics, positive momentum in capital markets, and government initiatives to bolster their countries’ logistics industries, with Saudi Arabia set to become a key global logistics hub.”

Globally, GFH Partners has successfully acquired more than 50 logistics assets in six countries across three continents. In December 2020, the group bought a majority stake in UK-based Roebuck, which owns a large portfolio of logistics facilities in the UK and across Europe.

GFH Partners is focused on expanding GFH Financial Group’s global asset management capabilities in the real estate sector and currently manages more than US$6 billion of real estate assets as part of the total US$18 billion of assets and funds managed by the Group.

 GFH Partners is regulated by the Dubai Financial Services Authority (DFSA), and its investments and offerings are further regulated by respective domiciles, including regional regulators such as the Central Bank of Bahrain (CBB) and the Saudi Capital Market Authority (CMA), as well as respective global regulators of the investment vehicles, ensuring best practices in line with international investment standards.

GFH Partners is a subsidiary of DIFC based subsidiary of GFH Financial Group, has completed the acquisition of a US$150 million diversified and multifaceted logistics and industrial portfolio in the Kingdom of Saudi Arabia and includes assets in the United Arab Emirates as well.