Lunate, Blackstone to Invest in GCC’s Logistics Sector

Blackstone, the world’s largest alternative asset manager, and Lunate, an Abu Dhabi-based global investment management firm with over $110 billion in assets under management, on Monday announced a strategic partnership to invest in logistics assets across the Gulf Cooperation Council region (GCC).

Under the partnership, Blackstone, which is the largest owner of logistics assets globally at over 1.2 billion sq. ft., and Lunate, which has an extensive regional network and investment capabilities, will establish Gulf Logistics Infrastructure Development Enterprise (GLIDE), a platform dedicated to the development, acquisition and management of Grade A logistics assets across the GCC.

It is expected that additional strategic partners in the GCC will also participate in GLIDE, which will have dedicated teams across the region, supporting its build-out, Blackstone said.

Demand for logistics in the GCC is growing rapidly, driven by a number of factors including economic growth, rising e-commerce and manufacturing activity.

At the same time, there is currently a significant gap in the availability of Grade A logistics facilities, featuring modern specifications, superior operational efficiency, and adherence to international standards, which is creating compelling investment opportunities in the region.

Targeting $5 billion in high-quality warehouse assets, GLIDE will seek to accelerate the development of logistics infrastructure in the GCC, focusing primarily on greenfield developments, complemented by selective portfolio acquisitions and sale and leaseback transactions with leading regional businesses.

Powerful Momentum for Logistics

Jon Gray, President and Chief Operating Officer at Blackstone, said that the profound economic transformation underway in the GCC, driven by pro-growth policies, favourable demographic shifts and broad-based economic diversification, is creating powerful momentum for sectors like logistics. “We are thrilled to partner with Lunate to combine our investment expertise and deep logistics experience with their strong GCC presence and capabilities to build GLIDE, a pan-regional logistics platform at scale,” he added.

Khalifa Al Suwaidi, Managing Partner at Lunate, said that they were proud to join forces with Blackstone, the world’s largest logistics assets owner, to launch GLIDE, a unique platform designed to capitalise on opportunities in the GCC logistics market.

He added: “GLIDE will offer our clients and investors access to compelling investments in high-quality logistics assets and support the development of new infrastructure to drive growth across the GCC. This partnership combines global scale with regional expertise to unlock a market ready for transformation.”

Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $325 billion of investor capital under management. It is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, data centers, residential, office and hospitality.

Lunate is an independent global investment firm with a core focus on private markets, and is also active across the broader asset management spectrum, working with a diverse client base that includes institutions, family offices and corporates.