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Alternative Investment

Investcorp set to invest $1bln in GCC real estate over next five years

  • $100m-worth of investments in the Kingdom of Saudi Arabia currently under consideration
  • Investcorp’s global warehousing logistics portfolio reaches $4bn

Bahrain – Investcorp, a leading global alternative investment firm, announced today that it is planning to invest up to $1 billion in the real estate market in the GCC over the next five years.

This follows Investcorp’s first real estate acquisition in the Kingdom of Saudi Arabia. The investment is a brand new, state-of-the-art, 215,000 square feet temperature-controlled warehouse located in Dammam. This is the first of $100 million-worth of real estate investments that the firm is currently assessing in the Kingdom of Saudi Arabia.

The Dammam warehouse is fully leased to Racking Systems Logistics Services Company (also known as “RTL”), a third-party logistics company, which serves the Saudi market in the temperature-controlled warehousing and distribution segment. The investment in the Dammam warehouse – which can store up to 32,000 pallets of goods – will bring the value of Investcorp’s global warehousing logistics investments to over $4 billion, representing approximately 42 million square feet of industrial space.

Hazem Ben-Gacem, Co-Chief Executive Officer of Investcorp, commented: “The Saudi Arabian real estate market is experiencing strong growth. 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. 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.”

Babak Sultani, Head of GCC Real Estate at Investcorp, said: “Our first acquisition of a warehouse facility in the GCC expands on our recent activity in the region where we see long-term growth dynamics, particularly in the Saudi Arabian market. 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.”

The acquisition follows another recent investment in the GCC logistics sector. In September 2022, Investcorp’s Gulf Pre-IPO Growth Fund led a $100m financing round in TruKKer Holding Limited, MENA’s largest digital freight network. Investcorp also acquired a majority stake in NourNet, one of Saudi Arabia’s leading Connectivity and ICT services providers. Since Investcorp established a presence in the Kingdom of Saudi Arabia in 2008, the firm has publicly listed four Saudi businesses on Tadawul, generating over $40 billion in potential demand from their respective pre-listing marketing exercises. As of December 2022, Investcorp’s portfolio companies employ over 20,000 employees across the Kingdom of Saudi Arabia. 

-Ends-

About Investcorp

Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes, infrastructure and insurance asset management. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.

We invest a meaningful portion of our own capital in products we offer to our clients, ensuring that our interests are aligned with our stakeholders, including the communities that we operate within, towards driving sustainable value creation. We take pride in partnering with our clients to deliver tailored solutions for their needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach. In January 2022, Investcorp issued its 2021 Responsible Business Report which outlines its Environmental, Social, and Governance (ESG) highlights for 2021 and specific initiatives the Firm implemented to meet its goals: https://www.investcorp.com/esg.

Investcorp has today 13 offices across the US, Europe, GCC and Asia, including India, China and Singapore. As of June 30, 2022, Investcorp Group had US $42.7 billion in total AUM, including assets managed by third party managers, and employed over 480 people from 50 nationalities globally across its offices.

For further information, visit www.investcorp.com and follow us @Investcorp on LinkedInTwitter and Instagram.

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