Over the next five years, the Bahraini investment company Investcorp will invest up to $1 billion in the Gulf region’s real estate market. A new 215,000 square foot temperature-controlled warehouse in Dammam was already purchased by Invetcorp, a company with significant real estate assets in the US, in Saudi Arabia.
This is the first of several real estate projects totaling $100 million that it is evaluating in the Kingdom. Third-party logistics company Racking Systems Logistics Services Company has a full lease on the Dammam property. With the purchase of the warehouse, which has a capacity for up to 32,000 pallets of merchandise, Investcorp will have invested over $4 billion, or 42 million square feet of industrial space, in warehousing and logistics.
“The logistics and industrial sectors have enormous potential as key pillars of Saudi Arabia’s Vision 2030 agenda to transform the Kingdom into a leading industrial powerhouse and a global logistics hub,” said Hazem Ben-Gacem, Co-CEO at the Bahrain firm. “Investcorp is a natural partner in this growth journey, and this acquisition leverages our global experience investing in the logistics sector – particularly in the US, Europe, and India.
“This is the first in a series of investments that we are planning to make in the near future – with a view to investing $1 billion over the next five years.” – Hazem Ben-Gacem, Co-CEO at the Bahrain firm
The largest digital freight network in MENA, TruKKer Holding Limited, raised $100 million in investment in September from Investcorp’s Gulf Pre-IPO Growth Fund. Additionally, it purchased the majority of NourNet, one of the top connectivity and ICT service providers in Saudi Arabia.
“We have ambitious plans across diversified real estate sectors that support healthcare, education, entertainment, consumer goods, tech-enabled services, manufacturing, transport and logistics, and industrial services.” – Babak Sultani, Head of GCC Real Estate at Investcorp
Since Investcorp established a presence in the Kingdom of Saudi Arabia in 2008, the company has publicly listed four Saudi companies on Tadawul, creating a potential demand of over $40 billion from each of their pre-listing marketing campaigns.