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Saudi Arabia's Jadwa Investment announced on Monday that it has signed a memorandum of understanding (MOU) with Al Mqr Real Estate Development Company and Al Majdiah Residence to establish a new private real estate investment fund to undertake a mixed-use project in Madinah.
Al Mqr Real Estate Development Company is the development arm of Madinah Regional Municipality.
Jadwa Investment said in a press statement that the new fund would be a closed-end, Shariah-compliant real estate development fund with a target size of approximately 700 million Saudi riyals ($187 million).
It said the fund would acquire and develop a 464,003 square metre land plot into a mixed-use masterplan comprising of residential and commercial segments.
The statement said certain components of the project would be sold as developed land plots while others would be sold and leased in the form of superstructure offerings to end-users.
Jadwa Investment would serve as the fund manager, Al Mqr Real Estate Development Company as strategic partner and Almajdiah Residence as the development partner for the project, according to the press statement.
As of March 2022, the Saudi investment management and advisory firm is managing a total of 13.4 billion riyals ($3.6 billion) in real estate assets across development and income-generating funds, the statement said.
(Writing by SA Kader; Editing by Anoop Menon)
