Arab Press

بالشعب و للشعب
Tuesday, Feb 07, 2023

Investcorp to capitalize on Saudi logistics market as it plans $1bn GCC investment

Investcorp to capitalize on Saudi logistics market as it plans $1bn GCC investment

Bahrain’s Investcorp plans to invest up to $1 billion in the real estate market across the Gulf Cooperation Council countries over the next five years, with a key focus on Saudi Arabia as it looks to capitalize on the Kingdom’s booming logistics sector.    

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. 

Hazem Ben-Gacem, co-CEO of Investcorp

He added: “Investcorp is a natural partner in this growth journey, and this acquisition leverages our global experience investing in the logistics sector – particularly in the US, Europe and India.”  

Investcorp disclosed that this is the first in a series of investments that the company is planning to make in the near future – with a view to investing $1 billion over the next five years. 

Babak Sultani, head of GCC Real Estate at Investcorp, added: “Our first acquisition of a warehouse facility in the GCC expands on our recent activity in the region where we see long-term growth dynamics, particularly in the Saudi Arabian market.”  

He said the company has ambitious plans across diversified real estate sectors that support healthcare, education, and entertainment, as well as consumer goods, tech-enabled services, manufacturing, transport and logistics, and industrial services.  

Babak Sultani, head of GCC Real Estate at 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.


Related Articles

Arab Press
2 earthquakes in Turkey killed over 2,300 people
Powerful Earthquake Strikes Turkey and Syria, Killing More Than 1,300 People.
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
Shell reports highest profits in 115 years
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Germany confirms it will provide Ukraine with Leopard 2 tanks
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Saudi FM discusses Kingdom’s economy, oil, Iran and US ties in Davos
Israelis rally in three cities against Netanyahu legal reforms
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Saudi Arabia plans to use domestic uranium for nuclear fuel
Mohammed Bin Salman chosen most influential Arab leader of 2022
Dirty bomb fears as URANIUM is found in cargo at Heathrow
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
United Arab Emirates says it will teach Holocaust in schools
Saudi Arabia set to overtake India as fastest-growing major economy this year 
International medical experts speak out against COVID-19 restrictions on China
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Saudi Arabia’s female ambassadors: Who are the five women representing the Kingdom?
Almubarak named ‘The Best Central Bank Governor of the Year 2023 for the Middle East’
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Dubai announces $8.7 trillion economic plan to boost trade, investment and global hub status
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator