Logistics Middle East

Rising global investor interest seen in UAE’s industrial spaces


The UAE’s industrial and logistics space is increasing­ly attracting global investor interest, according to global real estate advisor JLL in a report by Arabian Business.

JLL said the recent saleand-leaseback of Transworld Group’s logistics facility in Jebel Ali Free Zone, Dubai showcases positive investor sentiment and signals future growth in the sector.

The rise in e-commerce and subsequent digitisati­on of the supply chain industry are major factors fuelling growth and investor interest for high quality assets in the industrial logistics space, it added in a new report.

Abdul Kader Monla, director, Capital Markets in MENA, JLL, said: “In the long run increased capital investment­s of this scale will drive future developmen­t of quality space, fulfilling demand for warehouse facilities across the UAE.

“The logistics sector is attracting significan­t interest from institutio­nal investors, asset managers, REITs and private family offices seeking long term returns that are backed by quality tenants while retaining little or no management responsibi­lity for the real estate.”

JLL said it is currently advising a number of firms considerin­g asset light strategies, allowing greater returns through reinvestin­g the sale proceeds into their core business.

When compared to traditiona­l debt, alternativ­e funding structures can allow for higher capital release while minimising cash outflow.

“We expect to see an increasing number of future trades given the unique value propositio­n and attractive attributes of the sector, particular­ly in today’s tight market conditions,” added Monla.

 ??  ?? The logistics sector is attracting signilcant interest from institutio­nal investors.
The logistics sector is attracting signilcant interest from institutio­nal investors.

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