Mubasher: GFH Partners Limited, a DIFC-based subsidiary of GFH Financial Group, has completed the acquisition of a $150 million diversified logistics and industrial portfolio in Saudi Arabia and the UAE as well.
The portfolio includes stabilised income-yielding assets and development opportunities in strategic logistics zones across the key cities of Riyadh and Dubai, according to a press release.
It has a mix of light industrial and cold storage facilities, in addition to a variety of distribution and warehousing assets.
The opportunity to invest in Saudi-based logistics is driven by a hike in the Kingdom’s non-oil sector, which is expected to increase by 5.9% in 2023.
Likewise, the UAE’s economy anticipates a 3% growth in 2023 followed by a 4% surge the following year, backed by non-oil sectors as well.
Nael Mustafa, CEO of GFH Partners, said: “Combining high-quality, income-generating facilities and development opportunities, the acquisition is well-positioned to capture opportunities arising from the current expansion of the GCC logistics sector.”
“Particularly in Saudi Arabia, where the Kingdom’s Vision 2030 is driving the rapid modernisation and development of the country’s transportation and logistics industry to diversify its economy and shift its dependency away from the oil industry,” Mustafa added.
The CEO mentioned: “It also leverages GFH Partners’ deep global experience in the sector that has seen us build an exceptional capability and portfolio of blue-chip assets across the GCC, US, UK, and Europe.”
“Further to this acquisition, GFH Partners aims to rapidly expand our GCC logistics real estate platform to SAR 1 billion ($250 million) over the next 12-18 months,” he noted.
In the first half (H1) of 2023, the net profits attributable to the owners of GFH increased by 29.50% to $54.61 million from $42.18 million in H1-22.
