Gulf Islamic Investments And Logipoint Partner For $300 Million Logistics Platform In Saudi Arabia
Gulf Islamic Investments (GII), a prominent Shari'ah-compliant global alternative investment company, and Logipoint a subsidiary of SISCO and a leading industrial and logistics real estate developer in Saudi Arabia, have embarked on a strategic partnership. This collaboration aims to establish a joint venture focused on creating a logistics platform that will feature Grade A warehousing solutions across the Kingdom.
The initiative, valued at SR1 billion ($300 million), marks a significant step towards enhancing the logistics infrastructure within Saudi Arabia.The joint venture between GII and Logipoint promises to develop new logistic infrastructures in major Saudi cities, starting with Riyadh and Jeddah. The focus will be on providing comprehensive warehousing and handling facilities, which will serve as the foundation of a multi-asset logistical network. This network is designed to support a wide range of companies operating throughout the kingdom, thereby boosting the logistics sector's efficiency and capacity.
This partnership represents GII's second logistics venture in a short period, demonstrating the company's commitment to expanding its footprint in the logistics sector. GII, which boasts over $4.5 billion of assets under management (AUM), recently witnessed Brookfield Asset Management acquiring a majority stake in its logistics business in the UAE. This business is known for delivering bespoke warehousing solutions to high-end, long-term clients.
GII's involvement in the logistics sector began in December 2017 with the acquisition of a logistics fulfilment centre in Dortmund, Germany. This centre, developed in partnership with German logistics specialist GARBE Industrial, encompassed one million square feet of space. The partnership successfully sold the centre to an Asian investor in 2020, achieving an internal rate of return (IRR) of 18%. GII has since concentrated on acquiring, aggregating, repurposing, and developing logistics facilities in the GCC. These facilities cater to leading companies, including Hellman, CEVA, Sinotrans, Noon, among others, often in collaboration with local partners.
Pankaj Gupta, co-founder and co-CEO of GII, shared insights into the new venture: "GII's partnership with Logipoint extends GII's logistic operations across Saudi Arabia to facilitate rapid expansion of the kingdom's infrastructure, supporting its booming economy. It is a natural progression for GII after our recent transaction in which Brookfield acquired a majority stake in GII's logistics assets in the UAE."
Growth Strategy
Mohammed Alhassan, GII's co-founder and co-CEO, highlighted the joint venture's significance as part of the company's growth strategy within Saudi Arabia. This strategy includes obtaining a CMA banking licence for GII Saudi Arabia and acquiring Emad Bakeries in Jeddah in the last two months.
Farooq Shaikh, CEO of LogiPoint, expressed optimism about the partnership, stating, "This partnership with GII has opened up a new world of investment opportunities. We are committed to leveraging our expertise in developing logistics zones and parks to drive our expansion strategy. Our collaboration with GII reinforces our position as leaders in the logistics industry. LogiPoint is proud to be aligned with the Vision 2030 goals, playing a pivotal role in transforming Saudi Arabia into a global logistics hub."
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