To develop an 80,000sqm mixed-use storage complex
Bahrain-headquartered global alternative investment firm Arcapita Group Holdings, recently reached an agreement with Flow Progressive Logistics (Flow) to develop a modern class A logistics complex in Riyadh.
An end-to-end supply chain management company, Flow is a part of Saudi-based Alsulaiman Group. As per the deal inked during the Supply Chain and Logistics Conference held in Riyadh, Arcapita will develop an 80,000sqm mixed-use storage complex.
The facility will feature various storage options, including cold storage, dry storage, temperature-controlled facilities, as well as specialized spaces for pharmaceutical and hazardous goods.
Flow, which provides international shipping, customs clearance, warehousing, transportation, delivery, and reverse logistics, will operate the facility under a long-term lease agreement.
Driving growth
The Ministry of Transport and Logistics Services has been instrumental in driving growth in this sector, and its support continues to encourage private sector participation.
The industrial and logistics sectors are key components of the Kingdom’s Global Supply Chain Resilience Initiative, which aims to attract SAR 40bn (US$ 10.6bn) in investments.
“The Saudi Arabia industrial and logistics market continues to demonstrate positive supply-demand dynamics that are likely to support rental growth in the foreseeable future,” observed Isa Al Khalifa, Director of Real Estate Investments, Arcapita.
Arcapita Group currently manages over $1 billion of industrial real estate assets in GCC, making it one of the largest real estate platforms in the GCC. The firm is expected to double its GCC logistics AUM to US$ 2bn by 2025.
“The new facilities will allow us to meet the increasing demand for comprehensive supply chain services and offer advanced solutions to our clients in various sectors, including pharmaceuticals and hazardous goods,” commented Achraf Ellili, CEO, Flow.
