Arab News, Tue, Apr 23, 2024 | Shawwal 14, 1445
Alistithmar Capital, Ezdihar Real Estate partner to launch $293m property development fund
Saudi Arabia:
Saudi Arabia’s Alistithmar Capital is teaming up with Ezdihar Real Estate
Development Co. to create an SR1.1 billion ($293 million) property fund in a
move that will benefit Riyadh’s commercial and office landscape.
In a statement, Alistithmar Capital, the
investment subsidiary of Saudi Investment Bank, announced that the aim is to
boost investors’ capital growth by obtaining usufruct rights to a 103,000 sq. m
parcel of land within King Saud University’s premises on Prince Turki Al-Awwal
Road in Riyadh, to develop the land into a revenue-generating commercial office
complex.
The firm’s CEO, Khaled Abdulaziz Al-Rayes,
commented that the partnership with Ezdihar seeks to pursue shared objectives in
real estate and offer investors opportunities tailored to their goals and the
evolving real estate landscape.
He added that his organization remains dedicated
to offering high-quality investment prospects for real estate investors through
meticulously structured funds tailored to each project’s requirements. This
approach ensures maximum benefits and optimal returns on investment.
For his part, Abdulmohsen Fawaz Al-Hokair, CEO of
Ezdihar, said: “Through our strategic partnership with Alistithmar Capital, we
aim to provide more unique investment opportunities for investors in the real
estate sector, in line with our company’s efforts to offer quality products that
meet customer expectations.”
The recent deal recalls the agreement made by
Alistithmar Capital in March 2023 with Safa Investment Co. to launch multiple
real estate funds.
The first reserve, estimated at $292.9 million,
marked their initial collaborative efforts in the sector.
It was announced at that time that both companies
would cooperate to help support the Kingdom’s growth in the property field
through funds that target the residential space in central cities with a
particular focus on Riyadh.
The reserves aim to enhance the growth of the
invested capital by acquiring land in the targeted geographical areas to develop
high-quality residential complexes and sell them ready for habitation.
Additionally, Forbes Middle East ranks
Alistithmar Capital 6th among the largest asset management firms in Saudi Arabia
and 11th in the Middle East.
According to Forbes Middle East’s 2024 list, their
total assets under management are approximately SR32 billion.