Ayyan Investment Company has signed a memorandum of understanding (MoU) with Al Rajhi Capital and Sumou Holding Company to set up a private real estate fund to develop a mixed-use project in Riyadh.

The project, covering 83,446 square meters, is estimated to cost more than 600 million Saudi riyals ($160 million), Ayyan said in a statement to the Saudi stock exchange. 

The fund will own the land located in Al Janadriyah district of Riyadh.

Al Rajhi Capital will serve as the fund manager, while Sumou Holding Company will be the project developer.

Ayyan Investment will contribute its land holdings as an in-kind investor.

The final participation ratios of the three partners will be determined upon the fund's establishment, the statement said.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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