Tourism Enterprise Company (Shams) will invest 243.8 million Saudi riyals ($64.92 million) in a closed-end private equity fund to develop a five-star hotel in Al Khobar city.
 
The fund, managed by SEDCO Capital, will invest in the 5-star Fairmont hotel at Ajdan Waterfront along the Al-Khobar Corniche, the company said in a statement on the Saudi stock exchange on Monday.

The seven-year SEDCO Capital-Ajdan Fairmont fund will have a capital of SAR 295 million. Ajdan Real Estate Development Company will be the developer, with an internal yield projected at 12.26 percent.  

 The hotel will be built on a 6,827-square metre beachfront plot, with a 33,917-sqm built-up area. The 36-floor hotel will house 160 keys and suites.
 
Construction is ongoing with 26 floors completed, the statement said. 

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

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