Octo + GFH target UAE logistics

Another industrial and logistics platform in the works: Homegrown alternative investment manager Octo Management Consultancies partnered with Bahraini investment manager GFH to develop a USD 300 mn logistics and industrial real estate platform targeting development prospects across the UAE and Saudi Arabia, according to a statement.

What the platform will target: The platform, for which GFH will serve as investment manager and development partner, will focus on large-format warehousing, multi-let industrial assets, cold storage facilities, and distribution centers. The venture will pursue a mix of build-to-suit and speculative developments — primarily targeting assets at the development stage.

Why it matters: The platform lands at a moment when demand for logistics space across the UAE is structurally outpacing supply. Warehouse occupancy rates in Dubai have exceeded 97%, with rents rising 33% y-o-y — underscoring how acute the supply-demand imbalance has become.

The logistics partnership is one of several to crop up as of late, signaling that investors believe the structural drivers behind those numbers — e-commerce growth, supply chain localization, manufacturing expansion, and major infrastructure investment — have considerably further to run across both the UAE and Saudi Arabia. Back in January, GFH established a UAE-focused logistics platform in partnership with Asian investment manager Gaw Capital. Meanwhile, Abu Dhabi asset manager Lunate formed a strategic partnership with alternative asset manager Blackstone late last year to develop a USD 5 bn portfolio of Grade A logistics assets across the GCC.