In recent years, the logistics market has gained significant momentum, due to the increase in international trade, which has contributed to a significant increase in shipping volumes and storage services. The port areas in Israel are strategic areas, used to store approximately 97% of the goods that pass through to Israel’s ports.

Generation has identified the logistics market as a growing sector with high potential and has partnered with Friedenzon, an established player in logistics, to create Friedenzon-Generation. The company operates in the field of logistics storage across several facilities near the ports in Ashdod and Haifa. When the fund acquired this operation in 2021, the company owned only three facilities, but by the end of 2025, it is expected to expand to six facilities.

The logistics storage sector is rapidly growing, characterized by new investments and business development opportunities. Friedenzon-Generation holds rights to attractive properties in strategic locations close to seaports, with access to rail infrastructure. These assets are held long-term with high occupancy rates and have significant potential for development and construction. In the long term, we expect the logistics storage sector to continue to grow in Israel, as it is doing globally, driven by an increase in import and export activities, primarily conducted through seaports.