Panattoni and GFH to invest $500m in I&L projects in Saudi
Panattoni Saudia Arabia and GFH Financial Group have formed a strategic partnership to develop 500,000 sq m of logistics facilities in the Kingdom of Saudi Arabia.
The collaboration is to focus on creating high-quality logistics and industrial infrastructure across key cities, including Riyadh, Jeddah and Dammam. An investment of SAR 2 billion (US$500 million) is planned during the coming five years and an initial allocation of SAR 375 million (US$100 million) has been made to support the first phase and other development initiatives.
The first phase involves the development of a 50,000 sq m logistics park in south Riyadh, adjacent to Al Kharj Road.
“This collaboration with Panattoni is 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,” said Razi Almerbati, CEO of GFH Capital Saudi and group chief placement officer. “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. Together, we aim to set a new standard for logistics facilities in the region.”
While Panattoni will leverage its expertise in development management, GFH will provide financial support and oversee the sourcing of tenants and leasing activities and has already signed a leasing agreement with GWC Logistics (GWC), one of the leading logistics providers in the region, for 200,000 sq m of space to be developed over the next four years.
The partners stated that GWC’s involvement as an anchor tenant is a milestone and reinforces the long-term viability and operational relevance of the planned logistics facilities.
“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,” Panattoni Saudi Arabia managing director Daniele Sotti said.
