Bahrain’s GFH Financial Group (GFH) and Panattoni Saudi Arabia have partnered to develop 500,000 square meters (sqm) of logistics facilities in Saudi Arabia.
The collaboration will focus on developing high-quality 'Grade A' logistics and industrial infrastructure across key cities, including Riyadh, Jeddah, and Dammam, with a total planned investment of $500 million over the coming five years.
The initial allocation will be $100 million to support the first phase and other development initiatives.
The first phase of the partnership includes the development of a logistics park in South Riyadh. The facility will have a built-up area of 50,000 sqm and support the increasing demand for premium logistics solutions in and around Riyadh.
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Panattoni will use its expertise in development management in the design, construction, and delivery of the logistics facilities while GFH will provide financial support and oversee the sourcing of tenants and leasing activities, with Qatar-based GWC Logistics (GWC) leasing up to 200,000 sqm of space developed by Panattoni over the next four years.
Saudi Arabia is facing a shortage of warehousing space due to surging demand, driven by the ongoing giga-projects and conservative investment approach of landowners, according to a study by global real estate consultancy Knight Frank.
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