Blackstone And Lunate Unveil $5 Billion GLIDE Platform To Enhance GCC Logistics Infrastructure

Blackstone, a leading alternative asset manager, and Lunate, an investment firm based in Abu Dhabi, have announced a new partnership. They aim to invest in logistics assets throughout the Gulf Cooperation Council (GCC) region. This collaboration will focus on developing and managing Grade A logistics facilities, addressing the growing demand driven by economic growth and increased e-commerce activities.

The partnership will establish Gulf Logistics Infrastructure Development Enterprise (GLIDE). This platform is dedicated to creating top-tier logistics infrastructure across the GCC. Blackstone brings its extensive global logistics experience, while Lunate contributes its strong regional network and investment skills. GLIDE aims to develop high-quality warehouse assets worth $5 billion.

There is a significant gap in available Grade A logistics facilities in the GCC. These facilities are known for their modern specifications and operational efficiency. The current shortage presents attractive investment opportunities as demand for such infrastructure grows rapidly due to economic expansion and rising manufacturing activities.

GLIDE will focus on greenfield developments, which involve building new facilities from scratch. Additionally, it will consider acquiring existing portfolios and engaging in sale and leaseback transactions with prominent regional companies. This approach aims to accelerate the development of logistics infrastructure across the region.

Additional strategic partners from the GCC are expected to join GLIDE. Dedicated teams across the region will support its expansion efforts. The initiative aligns with the ongoing economic transformation in the GCC, driven by pro-growth policies and demographic shifts that favour sectors like logistics.

Jon Gray, President and COO at Blackstone, expressed excitement about partnering with Lunate. He stated, "The profound economic transformation underway in the GCC...is creating powerful momentum for sectors like logistics." Khalifa Al Suwaidi of Lunate added that GLIDE would provide access to high-quality investments while supporting infrastructure development.

This collaboration combines Blackstone's global expertise with Lunate's regional strengths. Together, they aim to unlock potential in a market poised for change, enhancing logistics capabilities throughout the GCC.

With inputs from WAM