Dubai: The UAE-based Gulf Islamic Investments (GII) has cuts its second major deal in the logistics space in recent weeks. The company has launched a new joint venture with Logipoint, a subsidiary of SISCO, for a logistics platform that will provide Grade A warehousing across Saudi Arabia. The deal is valued at over SR1 billion (around $300 million).
LogiPoint is a developer focused on industrial and logistics real estate. It invests, manages and operates bonded and non-bonded logistics parks and zones.
The new joint venture will ‘create new logistic infrastructure in key Saudi cities’, starting with Riyadh and Jeddah.
GII had early this month sold a majority stake in its UAE logistics portfolio to the global investment firm Brookfield Asset Management. GII on its own has over $4.5 billion of assets under management.
GII’s logistics push started in December 2017 with the acquisition of a logistics fulfilment centre in Dortmund, Germany, comprising 1 million square feet of space. This was later sold the centre to an Asian investor in 2020, with an internal rate of return (IRR) of 18 per cent.
Its investment in GCC logistics assets has focused on ‘acquiring, aggregating, repurposing and developing facilities’ for third parties, including facilities in Dubai for Hellman, CEVA, Sinotrans, Noon and other clients.
Pankaj Gupta, GII’s co-founder and co-CEO, said: “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. It is a natural progression for GII after our recent transaction in which Brookfield acquired a majority stake in GII’s logistics assets in the UAE.”
GII’s Saudi exposure already includes a CMA (Capital Market Authority) banking licence and the acquisition of Emad Bakeries in Jeddah, both in the last two months.
