Abu Dhabi-listed Sorouh Real Estate and Goodman Group, an Australian integrated global industrial property group, have entered into a joint venture agreement for development and management of business and logistics parks in the Gulf Co-operation Council states.
Goodman Sorouh, the new company that will be incorporated and based in Abu Dhabi, is looking to announce at least one development deal this year, Richard Draycott, Managing Director, Middle East of Goodman, told Emirates Business.
“We are currently looking at developing the land bank portfolio Sorouh holds and demands. Next to that, we are looking at other opportunities in the Emirates and the rest of the GCC.”
The company has entered discussions with different parties on the development of property solutions in the GCC, Draycott added.
The 50:50 joint venture will include equal management rights and board representation. Goodman will provide its experience and global reach, while Sorouh will provide the right to build and manage business parks in the region, apart from access to land that it owns and will acquire in the future.
The Australian company manages more than $30 billion (Dh110.1bn) of property assets worldwide. It provides high quality office, logistics and industrial accommodation in business park locations to more than 2,700 of its customers.
“We chose to embark upon this joint venture with Goodman because they pioneered and led the concept of the business park and continue innovating to this day,” Mounir Haidar, Chief Executive Officer of Sorouh Real Estate, said in a statement. Draycott did not disclose details on the investment planned by the new company and said: “Both companies are listed on their respective stock exchanges and as such, investment decisions will be considered on a case by case basis and subject to approval of the board of each entity.”
Emirates Business had reported earlier the company was intending to join forces with Goodman for development and management of business parks.
The company is looking and is planning to capitalise on investment opportunities in neighbouring countries, Masood Al Awar, the special advisor to the Sorouh chairman, had told Emirates Business.
“We are looking at different opportunities in the GCC countries, particularly Saudi Arabia and Qatar.
“The Middle East too is on our expansion list,” Al Awar added. Sorouh is also not ruling out the idea to acquire an overseas company, “if it proves to be a good investment”, Al Awar had said.
“We are a fast growing and robust company and we look at different opportunities. We will acquire a company if it proves to be good investment and can add value to our shareholders,” Al Awar had said.
Goodman Sorouh to develop business parks in GCC