Investcorp, an alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, plans to invest up to $1 billion in the GCC real estate market over the next five years as it continues to expand its global properties and warehousing portfolio.
The company has already made its first Gulf real estate investment by acquiring a warehouse in Saudi Arabia, it said on Monday.
The investment in a 215,000 square feet temperature-controlled warehouse in Dammam is the first of the $100 million worth of real estate investments that Investcorp is currently assessing in the Saudi Arabia, the Arab world’s largest economy.
“The logistics and industrial sectors have enormous potential as key pillars of Saudi Arabia’s Vision 2030 agenda to transform the kingdom into a leading industrial powerhouse and a global logistics hub,” said co-chief executive Hazem Ben-Gacem.
“Investcorp is a natural partner in this growth journey and this acquisition leverages our global experience investing in the logistics sector — particularly in the US, Europe and India.”
The Dammam warehouse, which can store up to 32,000 pallets of goods, is fully leased to Racking Systems Logistics Services Company, a third-party Saudi logistics company.
The latest investment brings the value of Investcorp’s global warehousing logistics investments to more than $4 billion.
Investcorp’s latest acquisition follows its recent investment in the GCC logistics sector.
In September last year, Investcorp’s Gulf Pre-IPO Growth Fund led a $100 million financing round in TruKKer Holding, one of the largest digital freight networks in the Mena region.
Investcorp also acquired a majority stake in NourNet, one of Saudi Arabia’s leading connectivity and ICT services providers.
Since establishing its presence in Saudi Arabia in 2008, Investcorp has publicly listed four Saudi businesses on Tadawul stock exchange. Its portfolio companies in the kingdom employed more than 20,000 personnel at the end of 2022.
“We see long-term growth dynamics, particularly in the Saudi Arabian market,” Babak Sultani, head of GCC real estate at Investcorp, said.
“We have ambitious plans across diversified real estate sectors that support health care, education, entertainment, consumer goods, tech-enabled services, manufacturing, transport and logistics and industrial services.”
Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region.
The company went on an acquisition spree during the Covid-19 pandemic to capitalise on lower asset valuations and continued its aggressive portfolio expansion in 2022.
Investcorp, with $42.7 billion in total assets under management as of June 30, 2022, including those run by third-party managers, is an active investor in mid-market companies across consumption-linked sectors and in the proper business.
It has 13 offices in the US, Europe, GCC and Asia, including India, China and Singapore.