Agility Partners with Riyadh Development for Major Project
Agility's subsidiary partners with Riyadh Development Company to build a state-of-the-art warehousing facility in Riyadh.
Summary
Agility Logistics Parks, a subsidiary of Agility Public Warehousing Company, partners with Riyadh Development Company to construct a modern warehousing facility in Riyadh, marking a significant investment in the region's logistics infrastructure.
In a strategic move set to bolster its footprint in the Middle East, Agility Public Warehousing Company K.S.C. (Agility) has announced a landmark partnership between its subsidiary, Agility Logistics Parks (ALP), and Riyadh Development Company (ARDCO). This collaboration aims to establish a state-of-the-art warehousing facility in Riyadh, Saudi Arabia, marking a key development in the logistics landscape of the region.
The agreement, signed on December 9, 2024, outlines the construction of 58,000 square meters of Grade A warehousing on a 97,904 square meter parcel of land. With a total project value of SAR 227 million (approximately KD 23 million), ALP will hold a 60% stake in the venture. This ambitious project is set to commence in the first half of 2025, with a construction duration of two years.
This partnership not only signifies Agility's commitment to expanding its logistics infrastructure but also highlights its strategic focus on the burgeoning Saudi Arabian market. The collaboration with ARDCO, a leading property development and management company in Saudi Arabia, is poised to enhance Agility's operational capabilities and service offerings in the region.
From a financial perspective, the capital expenditure (Capex) associated with this project will be reflected in Agility's financials during the construction period. This strategic investment aligns with Agility's broader vision of driving innovation and resilience within the logistics sector.
Given the strategic importance of this project and Agility's robust market position, the outlook for the company's stock appears optimistic. Investors may find this expansion into Saudi Arabia a compelling reason to consider holding Agility shares. The company's continued investment in infrastructure and strategic partnerships underscores its potential for sustained growth and profitability.
In conclusion, the partnership with Riyadh Development Company marks a significant milestone for Agility, reinforcing its status as a leader in the global logistics industry. As the project unfolds, it is expected to create new opportunities and drive value for stakeholders, positioning Agility for long-term success in the region.
Source
Summary
Agility Public Warehousing Company announced that its subsidiary, Agility Logistics Parks, has entered into a strategic partnership with Riyadh Development Company to construct advanced warehousing facilities in Riyadh. Agility will contribute 60% to the partnership, with the project's total value estimated at SAR 227 million (approximately KD 23 million). The project involves building 58,000 square meters of Grade A warehousing on a 97,904 square meter plot and is expected to begin in the first half of 2025, with construction lasting two years. The capital expenditure will be reflected in Agility's financial statements during the construction period.
