Gulf warehousing Company (GWC) will disclosure develop Al Wukair Logistics Park – Manateq in furtherance of the DBFOT tender hosted by Manateq that entails a Concession period of 30 years. GWC chose to bid for this tender based on its understanding of the supply demand Logistics gap associated with the entrepreneurial bracket of individuals that constitute traders and Small business enterprises (SMEs)Across a Tenure of 5 years the Project is expected to incur a capital expenditure of approximately QAR 1.5 Billions which is inline with present-day cost of operations and is efficient in terms of expected rental return and market demand in the specific segment.The Facility is proposed to be developed with 15 % Equity and 85% Debt. However, considering that the development will be done in 2 phases and 75% of the Project will be completed before Equity investments are needed, the project may self-finance the final phase of development from retained earnings that accrue from the project itself.The project will be developed by Gulf Warehousing Company QPSC for the Manateq, Economic Zones Company. The Consultant shall be grade A or above. The EPC contractor shall be appointed based on the tender specifications and through an open tendering process.The Project will, over a period of 15 years, increase the Assets and Liabilities of the Group’s Balance Sheet by a cumulative net QAR 1.5 Billions.
The project will also boost the group’s capacity for space allocation and providing services which will enhance its inflow/outflow of cashThe opportunity and returns of the project are aligned directly to the forecasted GDP growth of Qatar over the next 10 years. The project is relatively low risk mainly due to the fact that the dependency of revenues is on existing market demand while relying only on 15% new market growth. The inherent risk of the project would be the standard suite of risks associated with large capex turnkey projects, mainly, construction and approval delay. Market Demand Risk is low. Suitable interventions and mitigation processes have been built into the construction planMoreover, GWC ensure that there is no conflict of interest relates to this project and there will no any change in the rate of ownership