Panattoni Saudia Arabia and GFH Financial Group (GFH) have launched a strategic partnership to deliver 500,000 sq m of state-of-the-art logistics facilities in Saudi Arabia.
The partnership will invest SAR 2bn ($500m) over the coming five years and have allocated an initial SAR 375m ($100m) to support the first phase of development and other development initiatives. The first phase involves the delivery of a 50,000 sq m logistics park in south Riyadh, adjacent to Al Kharj Road.
Going forward, Panattoni and GFH will focus on creating high-quality logistics and industrial infrastructure in key cities, including Riyadh, Jeddah and Dammam.
GFH has already signed a leasing agreement with GWC Logistics (GWC) – one of the leading logistics providers in the Gulf Cooperation Council (GCC) – for 200,000 sq m of space, to be delivered by the partnership over the next four years.
Razi Almerbati, CEO of GFH Capital Saudi and group chief placement officer, said: “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. 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.”
Daniele Sotti, managing director of Panattoni Saudi Arabia, added: “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, 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.”
