Manrre Logistics Fund partnership with GFH will strengthen the future for the Gulf logistics sector. GFH Partners Manrre REIT (CEIC) PLC (“Manrre” or the “Fund”) is a specialized real estate income fund, with focus on investing in industrial and logistics properties in locations with high barriers to entry.
Dubai, UAE: The logistics sector in the Gulf to achieve unprecedented growth, thanks to the rapid expansion of e-commerce and increased investments in modern infrastructure, says Kunal Lahori, Director of Manrre Logistics Fund, the GCC’s largest specialised real estate income fund with a strategic focus on industrial and logistics properties in high-barrier locations.
Launched by Dubai-based Palmon Group, Manrre is a Real Estate Investment Trust (REIT) specialising in institutional-grade logistics and industrial assets across the UAE and the GCC region. The Fund has strategically partnered with GFH Financial Group, one of the most prominent financial and investment partners in the sector.
Since its inception in 2020, the Fund has recorded a standout performance, consistently delivered 7 to 8 per cent annual dividends at an impressive 160 per cent plus in total return – outpacing all 24 REITs, including 19 REITs in Saudi Arabia, 1 in Bahrain, and 4 in the UAE across the GCC.
Speaking to The Brew News on the sidelines of a ceremony at Nasdaq Dubai to mark the Fund’s fifth year of successful launch, Kunal Lahori told, “The logistics sector in the region has a large market, as the UAE and Saudi Arabia play a key role in supporting the growth of the sector. The classification and development of logistics facilities has become an imperative necessity to meet the increasing demand resulting from the expansion of e-commerce.”
“The logistics sector in the region has witnessed tremendous development in recent decades, citing the experience of free zones that attract global companies and facilitating the movement of goods. However, the lack of modern logistics facilities in some areas poses a challenge, prompting the Fund to develop more advanced logistics projects to support the expansion of e-commerce and supply chains,” Lahori pointed out.
According to him, warehouse rents in the UAE are projected to further increase by 5 to 10 per cent in 2025 after having clocked 30 per cent jump in 2024 in the wake of e-commerce growth and high demand for logistics assets, shortage in warehouses and scarcity of industrial land. There is diverse demand from local and international logistics players, manufacturing companies, and e-commerce giants.
The Brew News: Can you tell us about the vision behind Manrre Logistics Fund?
Kunal Lahori: Manrre Logistics Fund was established to address the growing demand for high-quality logistics and industrial resources. We recognized a clear market gap, coupled with strong interest from multinational corporations looking for efficient, well-located warehouse and logistics spaces. With over 30 years of experience in logistics and warehousing, we are focused on engaging institutions and investors in this specialized asset class.
Launched in 2018 with an initial capital of AED 200 million, our fund has now grown to AED 500 million. Given the rapid expansion of the logistics sector, we are targeting AED one billion within the next 18 months. The market demand speaks for itself—there is an estimated requirement of 40 million square feet of warehouse space, making this an opportune time for strategic investments.
The Brew News: How does Manrre Logistics Fund manage land acquisition challenges in such a competitive market?
Kunal Lahori: Land acquisition is definitely challenging due to scarcity, but our strong network and well-established pipeline give us an advantage. We have a clear investment plan, with $90 million set for deployment this year alone. The real estate supply is constrained, with only 3% vacancy in our target market. To address this, we are actively investing in new assets—approximately $100 million—to help alleviate shortages and meet growing demand.
The Brew News: What role does e-commerce play in your portfolio?
Kunal Lahori: E-commerce is a key driver of our growth, constituting 60% of our portfolio. The sector has seen unprecedented expansion, and we have strategically positioned our logistics hubs in prime locations such as Motor City and Marina to maximize operational efficiency. These locations also facilitate partnerships with major players like Noon.com, ensuring seamless supply chain management.
The Brew News: Can you share insights on your investment strategy and fund performance?
Kunal Lahori: We currently have a manual logistics fund in operation, with a partner investing approximately $200 million. Over the past year, rental prices have surged by 25-30%, and while we expect some stabilization, we still anticipate annual increases of around 5-10%. Market trends remain strong, with supply constraints continuing to drive demand and asset value growth.
Additionally, free zones such as Jebel Ali and Abu Dhabi remain highly sought-after investment areas due to their tax benefits and strategic positioning. With continued population growth and evolving industry needs, we see immense potential for further expansion in these key locations.
“We see shortage in in all industrial areas. The demand for grade A assets is high, with a vacancy rate of only 3 per cent including a supply crunch. We expect some ease in supply in the next 12 to 18 months. We expect the market to stabilize at a 10 per cent increase rate, driven by the continuous demand for high quality assets and growth of e-commerce,” Lahori further said.
“This investment marks a pivotal moment for Manrre. We have consistently aimed to redefine the logistics and industrial real estate market in the UAE and beyond. With GFH Partners on board, we are well-positioned to expand our specialist asset class and further elevate Manrre’s market presence.”
“Manrre Logistics Fund is focused on building an advanced logistics infrastructure meeting the needs of the growing market, especially in the UAE and Saudi Arabia. Investment opportunities in the sector remain large, especially with the expansion of Gulf countries in supporting integrated logistics zones and enhancing their role as major centers for global trade,” he said.
Founded in 2018 by Palmon Group FZCO, a local logistics developer and owner, Manrre’s portfolio is valued at approximately AED 500 million. The Manrre portfolio comprises 26 high-quality properties that are 96 per cent leased and spans over 1.5 million sqft.
