GFH, Panattoni to build key Saudi industrial infrastructure
RIYADH, November 2, 2024
Bahrain-based GFH Financial Group, a leading regional financial group with key interests in asset management and real estate sectors, has signed a strategic partnership with the Saudi unit of Panattoni, an international developer specialising in industrial real estate and warehouses headquartered in California, US.
Announcing the key deal, GFH said the two will collaborate to develop 500,000 sq m of state-of-the-art logistics facilities in the kingdom.
It will focus on creating high-quality logistics and industrial infrastructure across key cities, including Riyadh, Jeddah, and Dammam with a total planned investment of SAR2 billion ($532 million) within the next five years.
Commenting on the partnership, GFH Capital Group CEO Razi Almerbati said: "This collaboration with Panattoni is a testament to our commitment to supporting Saudi Arabia’s Vision 2030, which aims to make the country a global logistics hub and a leader in sustainable and innovative logistics solutions."
"The logistics sector is a central pillar of the Kingdom’s diversification strategy, and we are proud to launch these investments which will drive economic growth by enhancing the quality of logistics infrastructure," he stated.
Under this deal, Panattoni will leverage its expertise in development management to ensure the highest standards in the design, construction, and delivery of the logistics facilities.
In parallel, GFH will provide robust financial support and oversee the sourcing of tenants and leasing activities, ensuring seamless execution.
To this end, GFH has signed an agreement with GWC Logistics (GWC), one of the leading logistics providers in the GCC, to support GWC in its expansion through the leasing up to 200,000 sq m of logistics space developed by Panattoni over the next four years.
"Together, we aim to set a new standard for logistics facilities in the region," he added.
According to him, GWC’s involvement as an anchor tenant is a key milestone in the project, reinforcing the long-term viability and operational relevance of the planned logistics facilities.
GWC will collaborate with the development team to ensure the properties meet its specific operational requirements, which include high-grade logistics standards, special infrastructure, and temperature-controlled storage capabilities, he added.
Daniele Sotti, the Managing Director at Panattoni Saudi Arabia, said: "We are excited to partner with GFH on this transformational project in Saudi Arabia’s high-growth logistics sector. Panattoni’s extensive experience in developing Grade ‘A’ logistics facilities will play a pivotal role in creating a sustainable and efficient logistics ecosystem in Saudi Arabia."
Ali Chamoun, the Development Director of Panattoni Saudi Arabia, said: "The collaboration aims to establish a new benchmark in logistics infrastructure, meeting the evolving needs of tenants while enhancing the Kingdom’s position as a fast-growing logistics hub in the region."
An initial allocation of SAR375 million will be made by the duo to support Phase I and other development initiatives.
This includes the development of a logistics park in South Riyadh, adjacent to Al Kharj Road. The facility will cover a built-up area of 50,000 sq m, strategically designed to support the increasing demand for premium logistics solutions in and around the capital, it added.-TradeArabia News Service
