SAWT BEIRUT INTERNATIONAL

| 27 May 2024, Monday |

Bahrain’s GFH buys Amazon-leased warehouses worth $2bn

GFH Financial Group, a Bahrain investment bank with over $13 billion in assets and funds, has purchased 14 logistics assets leased to Amazon for $2 billion, as the company continues to expand its portfolio and capitalize on the growth of e-commerce in the United States.

The new assets in 11 states are fully leased to the e-commerce giant and were purchased in collaboration with Preylock Holdings and other investors, according to GFH in a statement to the Dubai Financial Market, where its shares are traded, on Thursday.

“GFH’s investment drive is based on long-term fundamentals such as the continued growth of e-commerce, the evolution of supply chain logistics, and the inability of construction supply to meet demand.”

According to GFH, the warehouses were designed and built to Amazon’s specifications and are located near major ports and critical infrastructure, reducing inbound ground transportation expenses and providing significant national reach to the majority of the US market.

According to the company, demand for warehouse space in the United States outstripped new supply by 41 million square feet in the third quarter of this year and is expected to continue to grow as a result of increased e-commerce business and other developments.

“The 14 assets are strategically located…allowing Amazon to effectively streamline the flow and delivery of goods to its massive and ever-expanding customer base across the US,” said Nael Mustafa, GFH’s co-chief investment officer of real estate.

“The investment is supported by the ongoing growth in e-commerce, with Amazon unquestionably at the forefront, and the resulting demand for high quality industrial and warehousing space required for storage and distribution,” Mr Mustafa added.

    Source:
  • The National News