Dubai, UAE, October 01, 2018: Al Akaria Saudi Real Estate Company (SRECO), one of the largest publicly listed real estate developers on the Saudi stock exchange (Tadawul), and Alinma Investment Company (AIC) have signed a Fund Establishment Agreement for the Alinma Alakaria RE Fund.
The objective of the fund will be to develop three sites, located in Riyadh, and transform them into mixed-use developments, with a combined debt and equity structure valued at approximately SR 1.5 billion. The sites, which are to be developed, are as per the below:
- Al Akaria Marriott Tower: offering hotel, extended stay and offices, strategically located in the Center of Riyadh, on Salah Al Din Al Ayyubi road
- Riyadh Westin: a landmark development offering a variety of hospitality options, located on the Northern Ring Road of Riyadh with convenient access to King Fahad and the KAFD metro station
- Tilal Al Riyadh complex: offering a variety of residential and commercial options, located in in North of Riyadh.
Under the terms of this agreement, AIC will manage the fund in accordance with the requirements of the Capital Market Authority and will be responsible for arranging part of the development fund of the three sites. SRECO will provide 82,000 square meters of land along with partial contribution towards the fund.
Commenting on the agreement, Abdulrahman Almofadhi, Chairman of the board of directors of SRECO said:
‘’The signing of the Fund Establishment Agreement of the Alinma Alakaria RE Fund is a major milestone for SRECO and its new partnership-based investment strategy. Alinma Investment has been an active partner in the process of devising a detailed, sophisticated financial model that is Shari’a compliant, and this new fund will be the first one to be established by SRECO to finance its projects, through which the company will contribute to the growing portfolio of large-scale, mixed-use developments in the Kingdom of Saudi Arabia.”
The new fund mechanism includes a fund manager, a board of directors, a developer, contractors, an executive committee, legislative and regulatory bodies, an auditor, custodian and certified real estate evaluators.