GFH Partners Manrre REIT and Palmon Group open $11 million regional hub for specialised chemical storage at Jafza

Dubai: Making Dubai regional logistics hub for specialised chemical storage, GFH Partners Manrre REIT and Palmon Group have opened a new specialised temperature-controlled chemical warehouse in Jebel Ali Free Zone (Jafza).

The Palmon Group’s facility with a built-up area of 112,000sq ft on a 180,000sq ft plot at an approximate $11 million investment in Jafza adds to the Grade A logistics portfolio of GFH Partners Manrre REIT (CEIC) PLC (“Manrre” or “the Fund”), managed by GFH Partners Ltd. (“GFH Partners”).

Abdulla Bin Damithan, CEO and Managing Director of DP World GCC, inaugurated the specialised logistics hub, alongside senior officials and dignitaries from Jebel Ali Free Zone, GFH Partners, and Palmon Group.

Speaking on the launch, Kunal Lahori, CEO of Palmon Group and Board Member of Manrre, said: “The purpose-built logistics hub, developed by Palmon Group at JAFZA, reflects the rising regional demand for certified chemical storage infrastructure that supports manufacturing, energy, industrial services, and third-party logistics, meeting stringent international safety and compliance standards. The facility addresses a highly specialised segment of global trade, with chemical and petrochemical logistics accounting for approximately 10 percent of worldwide commerce.”

“The total investment in the facility was approximately $11 million, covering land, construction, compliance, and specialized fitouts. The facility has the capacity to store 9 to 10 different UN classes of chemicals, unlike most regional warehouses that handle only one or two classes. This diversification allows tenants to serve a broader range of clients with varied chemical storage needs,” he added. 

According to him, the facility’s development aligns with the rapid growth of manufacturing and energy activities across the GCC, driven by the region’s strong oil and gas base and the increasing relocation of manufacturers from Asia due to global trade shifts.

“Chemicals and petrochemicals represent 10 per cent of global trade, making regulated chemical storage a critical support function. Jafza’s creation of a dedicated chemical zone drove the decision to build this facility, aligning with Dubai’s infrastructure strategy. The GCC, particularly Saudi Arabia and the UAE, is heavily driven by petrochemicals and oil and gas, which underpins strong demand for such facilities,” he added.

Mohamed Ali, Head of GCC at GFH Partners, said: “The opening of this warehouse marks another important milestone in the expansion of the GFH Partners Manrre REIT portfolio, particularly in mission-critical industrial and logistics assets that serve high-growth sectors. The UAE continues to see strong demand for specialised storage solutions, and this facility reinforces our strategy to develop resilient, future-ready assets that deliver long-term value for our investors.”

Lahori further said, “A 10-year lease agreement has been signed with Safe Logistics, ensuring long-term stability. Jafza’s strategic advantages including proximity to the port, efficient export access, and a business-friendly regulatory environment have accelerated industrial growth, particularly within its dedicated chemical zone. Developed to the highest specifications and completed in a record 12 months, the warehouse is approved by Dubai Civil Defence and equipped with full CCTV coverage, premium-grade infrastructure and three segregated chambers that allow the safe storage of all major chemical classes, offering logistics operators a rare, all-encompassing solution within a single facility.”

“This new facility brings together precision engineering, regulatory compliance, and long-term value creation. Specialised chemical storage requires a high degree of control and risk management, and we have developed this warehouse to meet those expectations while offering flexibility and scalability for tenants. As one of the earliest developers in Jafza, Palmon Group remains committed to supporting the UAE’s logistics and industrial growth,” Lahori said.

The facility is, divided into three temperature-controlled chambers that reach a maximum height of 13 metres, with an advanced Early Suppression Fast Response (ESFR), and in-rack sprinkler systems to ensure safety and resilience across all operations.

The facility's layout allows storage of a diverse range of hazard-classified chemicals. One chamber is configured for UN Class 3 and 4 chemicals, a second accommodates UN Class 5 chemicals, while the third has been developed for UN Class 6, 8, 9 and non-regulated materials.

The warehouse offers capacity for 17,400 pallets and includes nine loading docks and three loading bays. The office space has been intentionally limited to three percent of the total built-up area, maximising operational efficiency and warehouse utility.

The logistics hub is now fully operational and is leased to Safe Logistics. The new facility is expected to play a significant role in strengthening regulated supply chains and supporting Dubai’s position as one of the region’s foremost logistics and industrial hubs.