Saudi Real Estate Company (SRECO), known as Al Akaria, has signed a contract with and Alinma Investment Company (AIC) to launch a real estate fund for the Alinma Alakaria.
Under the deal, the two companies will develop three sites in Riyadh and transform them into mixed-use projects, with a combined debt and equity structure value of SAR 1.5 billion ($400 million), according to an official statement.
Al Akaria will provide an 82,000-square metres land plot for the projects, while AIC will manage the fund subject to the Capital Market Authority’s (CMA) requirements.
The sites that will be developed are Tilal Al Riyadh complex, Riyadh Westin, and Al Akaria Marriott Tower.
Al Akaria Marriott Tower is featuring hotel, extended stay and offices, while Tilal Al Riyadh complex is offering various commercial and residential solutions.
On a related note, Riyadh Westin is providing a large number of services in the hospitality sector.
“This new fund will be the first one to be established by SRECO to finance its projects, through which the company will contribute to the growing portfolio of large-scale, mixed-use developments in the Kingdom of Saudi Arabia,” Al Akaria’s chairman Abdulrahman Almofadhi stated.
Al Akaria last reported a 46.2% increase in profits, reaching SAR 30.27 million during the second quarter of 2018, compared to SAR 20.71 million in Q2-17.
Started its operations in 2010, Alinma Investment is a 100% subsidiary of Alinma Bank.
Alinma Bank’s unit is providing solutions in various activities as portfolio management, managing investment funds, underwriting, and custodial and advisory services.