DSV and CBRE say the successful completion of the sale of the logistics player’s warehousing facilities in Dubai’s Jebel Ali Free Zone (JAFZA) and Dubai Investments Park (DIP) through a strategic sale and leaseback agreement marks a significant step forward for the logistics sector in the UAE and region.
Businesses typically use leaseback arrangements of their facilities to raise cash for other purposes such as technology or equipment purchasing and upgrades.
In this case, Bahraini firm Arcapita acquired DSV’s warehousing facilities with the assistance of CBRE.
Covering a combined area of 99,932 square meters in JAFZA and 22,955 square meters in DIP, these state-of-the-art facilities highlight the importance of providing top-tier logistics infrastructure to meet the evolving needs of the industry, said CBRE.
Highly regarded as a global leader providing Warehousing Solutions, Air, Sea & Land freight, DSV’s partnership with Arcapita marks a significant step forward for the logistics sector in the UAE and the Middle East region, the global real estate advisor added in a statement.
While the exact details of the transaction, including the length of the lease, were not disclosed, Chrys Mendonca, managing director of DSV in Dubai, said: “In our relentless pursuit of excellence, this partnership with Arcapita and the expertise of CBRE have seamlessly united our vision with strategic action. These cutting-edge warehousing facilities symbolize our commitment to advancing the logistics landscape in the UAE and the Middle East. As we stand at the crossroads of innovation and efficiency, we are poised to redefine industry standards and deliver exceptional solutions to our clients.”
Isa Al Khalifa, Director of MENA Real Estate at Arcapita, added: “Arcapita’s commitment to expanding our presence in this dynamic region. These facilities will enhance our capabilities to deliver exceptional value to our clients and partners, while further solidifying our position as a leading player in the logistics and real estate sectors. We look forward to leveraging our expertise and resources to optimise these assets and contribute to the growth and development of the regional supply chain.”
Over the last year, CBRE has worked closely with DSV on a number of key transactions across the United Arab Emirates, Egypt, Oman, and Jordan. Jonathan Briggs, head of Industrial & Logistics at CBRE Middle East described the deal as one of the largest “open-market industrial & logistics sale & leaseback deals in the UAE.”
He added: “Drawing on previous track record across the UK, Europe and the Middle East, CBRE’s Industrial & Logistics team ran an international best-in-class sales programme to deliver the best fit for DSV in a challenging set of market conditions. We look forward to completing the overall sales programme over the remainder of 2023.”
