Bahrain’s GFH Financial Group, a prominent financial entity in the asset management and real estate sectors, has entered into a strategic partnership with Panattoni’s Saudi division. Panattoni, a global developer of industrial real estate, is based in California, USA.
This partnership aims to establish 500,000 sq m of advanced logistics facilities in Saudi Arabia, focusing on key cities like Riyadh, Jeddah, and Dammam. The project represents an investment of SAR2 billion ($532 million) over the next five years.
Razi Almerbati, CEO of GFH Capital Group, emphasized that this collaboration supports Saudi Arabia’s Vision 2030, which seeks to transform the nation into a global logistics hub. The logistics sector is central to Saudi Arabia’s economic diversification efforts.
Under the agreement, Panattoni will apply its development expertise to ensure these facilities meet the highest standards. Meanwhile, GFH will provide financial backing and manage tenant procurement and leasing processes.
GFH has also collaborated with GWC Logistics, a leading GCC logistics provider, to lease up to 200,000 sq m of space developed by Panattoni over four years. This partnership aims to elevate logistics standards in the region.
GWC’s role as an anchor tenant is crucial, ensuring the project’s long-term viability and operational efficiency. GWC will work closely with the development team to align the facilities with its operational needs, including high-grade logistics standards and specialized infrastructure.
Daniele Sotti, Managing Director at Panattoni Saudi Arabia, expressed excitement about contributing to Saudi Arabia’s growing logistics sector. The collaboration aims to create a sustainable and efficient logistics ecosystem.
Ali Chamoun, Development Director at Panattoni Saudi Arabia, highlighted the plan to set new standards in logistics infrastructure, meeting tenants’ evolving needs while bolstering Saudi Arabia’s status as a logistics hub.
The initial phase of the project will receive an allocation of SAR375 million. This includes developing a logistics park in South Riyadh, near Al Kharj Road, covering 50,000 sq m to cater to the rising demand for premium logistics solutions in the capital region.
