Monday, May 06, 2013
(This story was originally published Sunday.)
ABU DHABI (Zawya Dow Jones)--Private equity firm Gulf Capital on Sunday said it has secured a 450 million Saudi riyals ($120 million) loan from a Saudi bank to fund the construction of a residential compound outside the capital Riyadh in a bid to tap the kingdom's rising demand for housing.
The development of the project, which will include 525 villas and cost a total of SAR650 million, starts this week and is expected to be finalised in 24 months.
"As you can see there is big demand for residential housing in KSA and there is also a shortage," said Gulf Capital Chief Executive Karim El Solh. "On a macro basis, being in Saudi Arabia, we see this fit as a very safe investment."
Gulf Capital secured the 10-year facility from National Commercial Bank, or NCB.
The firm said demand for housing came from both Saudi nationals and expatriates, with an estimated 1.3 million residential units needed in the next seven years.
Write to Nicolas Parasie at nicolas.parasie@dowjones.com
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(END) Dow Jones Newswires
06-05-13 0339GMT
