Alramz Real Estate Company has signed an agreement to launch a 370 million Saudi riyal ($98.57 million) Shariah-compliant real estate investment fund to develop a residential project in Riyadh.

Alahli Alramz Assayel Residential Fund will be equally owned by Alramz and Assayel Arabia Real Estate Company, a subsidiary of Ali bin Zaid Al-Qarishi & Brothers Company.

SNB Capital will manage the fund, Alramz said in a statement to the Saudi stock exchange.

Alramz will act as the project developer and exclusive marketer. The Ramz Al-Raed 2 project in Al Raed district, Riyadh, will include about 290 apartments on a 15,131-square-metre plot.

The value of the development contract will be determined upon completion of the required designs and regulatory approvals.

The project scope includes design, development, construction, marketing, sales management, as well as facilities and property management services, the statement said.

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

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