GFH Financial Group B.S.C. (GFH) and Panattoni, one of the world’s largest private developers of industrial real estate, have teamed up to develop 500,000 square meters of Grade ‘A’ logistics facilities in Saudi Arabia.
The partnership centers on establishing high-quality logistics and industrial infrastructure across prime cities, including Riyadh, Jeddah, and Dammam with a total planned investment of SAR 2 billion ($500 million) over the coming five years, and an initial allocation of SAR 375 million ($100 million) to support phase 1 and other development initiatives.
The initial phase will include the development of a logistics park in South Riyadh, adjacent to Al Kharj Road. The cutting-edge facility will span a built-up area of 50,000 square meters, aiming to support the surging demand for premium logistics solutions in and around the capital.
Mr. Razi Almerbati CEO – GFH Capital
“This collaboration with Panattoni is a testament to our commitment to supporting Saudi Arabia’s Vision 2030, which aims to make the country a global logistics hub and a leader in sustainable and innovative logistics solutions. The logistics sector is a central pillar of the Kingdom’s diversification strategy, and we are proud to launch these investments which will drive economic growth by enhancing the quality of logistics infrastructure. Together, we aim to set a new standard for logistics facilities in the region.”
Panattoni will leverage its expertise in development management to ensure the highest standards in the design, construction, and delivery of the logistics facilities. On the other hand, GFH will offer robust financial support and oversee the sourcing of tenants and leasing activities, ensuring effortless execution.
To this end, GFH has signed an agreement with GWC Logistics (GWC), a premier logistics provider in the GCC region, to support GWC in its expansion through the leasing up to 200,000 square meters of logistics space developed by Panattoni over the next four years.
GWC’s involvement as an anchor tenant plays a key role in this project, reinforcing the long-term viability and operational relevance of the planned logistics facilities. GWC will work closely with the development team to ensure the properties meet its specific operational requirements, such as high-grade logistics standards, special infrastructure, and temperature-controlled storage capabilities.
Daniele Sotti, Managing Director at Panattoni Saudi Arabia, stated that, “We are excited to partner with GFH on this transformational project in Saudi Arabia’s high-growth logistics sector. Panattoni’s extensive experience in developing Grade ‘A’ logistics facilities will play a pivotal role in creating a sustainable and efficient logistics ecosystem in Saudi Arabia.”
“The collaboration aims to establish a new benchmark in logistics infrastructure, meeting the evolving needs of tenants while enhancing the Kingdom’s position as a fast-growing logistics hub in the region,” added Ali Chamoun, Development Director of Panattoni Saudi Arabia.
