ESR plans Saudi and UAE logistics and data center platform with $10bn-plus pipeline

ESR has announced plans to build a long-term logistics and data center platform across the Gulf Cooperation Council, starting in Saudi Arabia and the United Arab Emirates, according to IREI. The pipeline spans more than 3 million square meters (32.3 million square feet) of logistics and digital infrastructure assets, with a potential end value exceeding $10 billion.

Modern institutional-grade logistics facilities account for less than 20 percent of total stock in the UAE and less than 10 percent in Saudi Arabia, the announcement said. Class A facilities in those markets run at near-full occupancy. ESR cites economic growth, expanding trade corridors, evolving supply chains and rising institutional investment as the demand drivers.

The company says it is engaging with strategic partners and investors to establish the regional platform. It points to relationships with institutions and stakeholders across the region, including those developed through its shareholder base and broader capital partner network.

ESR describes the strategy as combining local market knowledge, relationships and execution capabilities with its own development, asset management and capital formation expertise. The expansion builds on its Asia Pacific platform and its experience developing and scaling institutional-grade logistics properties.

What the reporting does not give is a target for capital raised, a timetable for the first projects, or which partners and investors are in discussions with the company. The $10 billion figure is stated as a potential end value for an identified pipeline, not committed capital.