GII and Logipoint create new logistics platform in KSA
Deal for warehousing solutions worth around US$ 300mn
Gulf Islamic Investments (GII) and Logipoint, a subsidiary of SISCO, recently signed an agreement in Jeddah to create a joint venture for a logistics platform providing Grade A warehousing solutions across the Kingdom of Saudi Arabia in a deal worth over SAR 1bn (US$ 300mn).
LogiPoint is a leading industrial and logistics real estate developer of Saudi Arabia, which invests, manages and operates bonded and non-bonded logistics parks and zones. The GII-Logipoint joint venture will create new logistic infrastructure in key Saudi cities, starting in Riyadh and Jeddah, providing warehousing and handling facilities as the backbone of a multi-asset logistical network serving companies across The Kingdom.
This partnership is the second logistics deal in quick succession for GII, a leading Shari’ah-compliant global alternative investment company with over US$ 4.5bn of assets under management (AUM).
Majority stake
Earlier this month, Brookfield Asset Management acquired a majority stake in GII’s logistics business providing high-end, long-term clients with bespoke warehousing solutions in the UAE.
GII’s logistics story began in December 2017 with the acquisition of a logistics fulfilment centre in Dortmund (Germany) with German logistics specialist GARBE Industrial, comprising one million square feet of space.
The partnership subsequently sold the centre to an Asian investor in 2020, with an internal rate of return (IRR) of 18%. GII’s investment in GCC logistics assets has focused on acquiring, aggregating, repurposing and developing facilities for leading companies, including facilities in Dubai for Hellman, CEVA, Sinotrans, Noon and other clients, often involving local partners.
Rapid expansion
“GII’s partnership with Logipoint extends GII’s logistic operations across Saudi Arabia to facilitate rapid expansion of the Kingdom’s infrastructure, supporting its booming economy,” asserted Pankaj Gupta, Co-founder and Co-CEO, GII.
“Our logistics joint-venture with Logipoint is the latest element of GII’s growth strategy within the Kingdom,” added Mohammed Alhassan, another Co-founder and Co-CEO, GII.
“This partnership with GII has opened up a new world of investment opportunities. We are committed to leveraging our expertise in developing logistics zones and parks to drive our expansion strategy. Our collaboration with GII reinforces our position as leaders in the logistics industry,” commented Farooq Shaikh, CEO, LogiPoint
“LogiPoint is proud to be aligned with the Vision 2030 goals, playing a pivotal role in transforming the Kingdom of Saudi Arabia into a global logistics hub,” he concluded.
