Gulf Pinnacle Logistics ventures into UAE Logistics Sector by acquiring majority equity stakes in two companies in Jebel Ali Free Zone
10 February 15
Gulf Pinnacle Logistics, a logistics focused investments company advised by Al Masah Capital Limited, an alternative asset manager based in Dubai, acquired 75% equity stake in Abdul Muhsen Shipping and 87.5% in So-Safe Logistics, with a combined land area of 45,000 sq. meters, built-up warehouse area of 20,000 sq. meters and full-fledged logistics consolidation operation, uniting both JAFZ North and South prime locations into the Gulf Pinnacle Logistics platform.
Gulf Pinnacle Logistics was established with the intent to invest in the logistics and transportation sector in the MENA (Middle-East and North Africa) and SEA (South-East Asia) region. It is being advised by Al Masah Capital (AMCL), a leading alternative asset management company, with subsidiary operations in the DIFC, Dubai. AMCL is active in the private equity advisory sector, having one of the most experienced investment teams in the region, led by its founder and CEO Mr. Shailesh Dash.
According to Mr. Shailesh Dash, "With the trade to GDP ratio of countries such as UAE and Singapore being well over 100%, it is clear that they are prominent trade hubs. We at Al Masah Capital have experience in operating assets in the MENA and SEA region for the last ten years. At Gulf Pinnacle Logistics, we strive to leverage on the strategic offerings of the MENASEA region as a global logistics hub."
The two assets will be managed by the CEO of Abdul Muhsen Shipping, Mr. Rodney Viegas, who has solid 22 years of logistics experience in Jebel Ali. Mr. Rodney Viegas commented, "We are excited to partner with Al Masah Capital, one of the leading private equity investors in this region and with an eye for attractive sectors. Jebel Ali today is not only a Middle-East, but a global logistics hotspot with ever growing volumes and a range of opportunities to offer. We are sure that Al Masah Capital will help us in growing and expanding throughout the region and globally".
Mr. Nrupaditya Singhdeo, a partner at Al Masah Capital leading the logistics initiative, added "we are glad to have concluded the first two acquisitions for our client Gulf Pinnacle Logistics . Spanning both the North and South zones, the two assets offer a diversified flavour of Jebel Ali Port and Dubai World Central to the Gulf Pinnacle Logistics portfolio. We are happy to have started from the Jebel Ali area which is growing in relevance internationally."
The two facilities employ more than 100 logistics workforce; equipped with key logistics assets such as warehouses, fork-lifts and vehicles; offer services spanning freight-forwarding, consolidation, warehousing, handling, port and vessel related activities; engage in import / export / transhipment of LCL (less-than-container-load) and FCL (full-container-load) cargo, catering to both 20-feet and 40-feet sized containers. They have clients not only in JAFZA but also overseas across GCC and Asia, and parts of Europe and the US. The two facilities witnessed significant growth over the last few years as UAE became a critical transhipment hub for the Middle-East, Asia, Africa and Europe.
Mr. Shailesh commented further on the strategy of Gulf Pinnacle Logistics by saying "A horizontally and vertically integrated company is key in the logistics sector to leverage on the current themes such as multimodal cargo management and logistics integrator model. It also enables a focus on capturing volumes with economies of scope and network, given a range of services, offerings and routes under one company. Such an integrated company has the potential to mirror the likes of large integrators in the mid-sector of MENASEA".
Mr. Nrupaditya further explained "Logistics sector offers a uniquely attractive investment theme in that it has businesses that offer a balanced mix of risks and rewards. While warehouses and road transportation are asset-heavy, freight-forwarding is asset-light. Similarly, some segments are cash businesses, while others work on credit; some are focused on corporate customers, while others on retail; some have project-based cycles, while others are straight-forward product-based businesses; some focus on South-South trade routes, while others focus on North-South trade routes, etc."
Building on the successfully closing of the two acquisitions, Mr. Nrupaditya stated "In addition to these great Jebel Ali assets, we are currently in final negotiations with a few other logistics players in courier services, road transportation and cargo management businesses. We expect to execute 3-4 more acquisitions in the next few months."