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New logistics facilities worth up to SAR 2 bn are coming to Saudi Arabia: European real estate developer Panattoni’s Saudi arm has inked a partnership agreement with Bahrain’s GFH Financial Group to develop premium logistics facilities worth SAR 2 bn (USD 500 mn) in Riyadh, Jeddah, and Dammam over a five-year timeframe, Panattoni and GFH said in statements.
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Breakdown: The SAR 2 bn (USD 500 mn) investment will be deployed over the coming five years to develop 500k sqm of logistics and industrial infrastructure at the sites mentioned. An initial SAR 375 mn (USD 100 mn) is earmarked for the first phase of the project, which will see the development of a 50k sqm logistics park adjacent to Al Kharj road in South Riyadh that is intended to support the increasing demand for logistics solutions in Riyadh.
Panattoni will be in charge of designing and building up facilities, while GFH will provide funding for the project and also oversee tenant sourcing and leasing activities. GFH has already secured a leasing agreement with Qatar-based GWC Logistics that will see the company lease up to 200k sqm across the project as an anchor tenant.
Background: Panattoni first kicked off operations in Saudi last April, when it had also noted that its key focus would be on the three mentioned cities.
