Lunate, Blackstone back GCC logistics endeavors: Abu Dhabi asset manager Lunate formed a strategic partnership with alternative asset manager Blackstone to develop a new platform to build a USD 5 bn portfolio of Grade A logistics assets across the GCC, according to statements here and here. More GCC-based strategic partners could join the platform later down the line to support the build-out, the statements said.

What’s in the cards? The platform, named Gulf Logistics Infrastructure Development Enterprise (Glide), will develop, acquire, and manage USD 5 bn worth of logistics assets across the region, with a focus on greenfield developments. It will also target sale and leaseback transactions with regional firms, it said.

The rationale: The move aims to address the gap in the availability of Grade A logistics facilities in the GCC — a market that has seen a significant rise in manufacturing and e-commerce sectors.

Demand for logistics and industrial assets reached record levels last year in Dubai alone, with demand for 40.6 mn sq ft in industrial and logistics space throughout the year. Supply has been struggling to keep up, with firms having to delay their expansion plans by two to four years. Grade A warehouses in prime locations were nearly fully occupied, with record-high occupancy rates of 90-95%, according to JLL’s Abhishek Mittal.

REMEMBER- Institutional investors are piling into the UAE’s real estate market. Big names like Blackstone, along with Canadian multinational Brookfield Corporation and Singapore’s state-owned investment firm Temasek Holding have been eyeing Dubai’s real estate sector, with all three aiming to deploy funds here in the UAE across mixed-use and commercial assets.

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