Riyadh – Mubasher: Agility will build a large logistics park for storage and distribution near Jeddah as part of a land-concession agreement announced by Saudi Arabia’s State Properties General Administration (SPGA).
The project at Jeddah- Al Mahjar calls for the construction of a modern warehousing complex on a 576,760 square metre parcel south of Jeddah, starting in the first quarter (Q1) of 2023, according to a recent press release.
The Agility Logistics Park – Jeddah is projected to open in Q1-25.
Under its agreement with SPGA, Agility will invest SAR 611 million ($163 million) to build the park and have the right to operate it for 25 years. Agility, dually-listed on DFM and Boursa Kuwait, currently operates the country’s most advanced logistics parks, Agility Logistics Parks in Riyadh (870,000 square metres) and Dammam (200,000 square metres).
Governor of the SPGA, Ihsan Bafakih, said: “This step will help the SPGA pursue and achieve its strategic objective of efficient management of its real estate assets in a way that maximises the benefits for the development of the economy. The SPGA is studying its real estate portfolio and working towards transforming its assets into lucrative investment opportunities by providing suitable property for sustainable, pioneering projects with private-sector partners.”
Initiatives such as the Agility facility in Jeddah offer an opportunity to enhance the contribution of the country’s real estate assets to the gross domestic product (GDP) while increasing the value of the government-held property, developed infrastructure, and sustainable buildings.
CEO of Agility Logistics Parks/Global Operations, Michel Saab, stated: “Ultra-efficient warehousing and distribution are a huge competitive advantage. Companies operating from these parks shorten their time-to-market, reduce cost and risk, increase inventory turns and boost productivity.”
