The global investment manager recently made its first real estate acquisition in Saudi Arabia, with a 215,000 square feet temperature-controlled warehouse in Dammam. This is the first of $100 million worth of real estate investments that the firm is currently assessing in the Kingdom, the company said in a statement.
The company has leased out its Dammam warehouse to Racking Systems Logistics Services Co., also known as RTL, a third-party logistics company, which serves the Saudi market in the temperature-controlled warehousing and distribution segment.
This brings the value of Investcorp’s global warehousing logistics investments to over $4 billion, representing around 42 million sq. ft of industrial space.
“The Saudi Arabian real estate market is experiencing strong growth. The logistics and industrial sectors have enormous potential as key pillars of Saudi Arabia’s Vision 2030 agenda to transform the Kingdom into a leading industrial powerhouse and a global logistics hub,” said Hazem Ben-Gacem, co-CEO of Investcorp.
The acquisition follows the company’s another recent investment in the GCC logistics sector as its Gulf Pre-IPO Growth Fund led a $100 million financing round in TruKKer Holding Limited in September 2022.
Investcorp also acquired a majority stake in NourNet, one of Saudi Arabia’s leading connectivity and information and communication technology services providers, according to the press release.
Investcorp, which entered Saudi Arabia in 2008, has since then publicly listed four Saudi businesses on Tadawul, generating over $40 billion in potential demand from their respective pre-listing marketing exercises.
As of June 30 2022, Investcorp Group had $42.7 billion in total assets under management including assets managed by third-party managers.