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Alternative Investment

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

Investcorp

Investcorp, an alternative investment firm, has announced that it is planning to invest up to $1bn in the real estate market in the GCC over the next five years.

This follows Investcorp’s first real estate acquisition in Saudi Arabia. The investment is a brand new, 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.

The Dammam warehouse is fully leased to Racking Systems Logistics Services Company, a third-party logistics company, which serves the Saudi market in the temperature-controlled warehousing and distribution segment.

The investment in the warehouse – which can store up to 32,000 pallets of goods – will bring the value of the company’s global warehousing logistics investments to over $4bn, representing approximately 42 million square feet of industrial space.

“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,” commented Hazem Ben-Gacem, co-chief executive officer of Investcorp.

“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 $1bn 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.”

Meanwhile, 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 digital freight network.

The firm also acquired a majority stake in NourNet, one of Saudi Arabia’s connectivity and ICT services providers.

Since Investcorp established a presence in Saudi in 2008, the firm has publicly listed four Saudi businesses on Tadawul, generating over $40bn in potential demand from their respective pre-listing marketing exercises.

Read: Bahrain’s Investcorp leads $67m investment in India’s Global Dental Services

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