RIYADH – Al Akaria Saudi Real Estate Company (SRECO), one of the largest publicly listed real estate developers on the Saudi stock exchange (Tadawul), and Alinma Investment Company (AIC) have signed a Fund Establishment Agreement for the Alinma Alakaria RE Fund.
The objective of the fund will be to develop three sites, located in Riyadh, and transform them into mixed-use developments, with a combined debt and equity structure valued at approximately SR 1.5 billion. The sites, which are to be developed, are as per the below:
- Al Akaria Marriott Tower: offering hotel, extended stay and offices, strategically located in the Center of Riyadh, on Salah Al Din Al Ayyubi road
- Riyadh Westin: a landmark development offering a variety of hospitality options, located on the Northern Ring Road of Riyadh with convenient access to King Fahad and the KAFD metro station
- Tilal Al Riyadh complex: offering a variety of residential and commercial options, located in in North of Riyadh.
Under the terms of this agreement, AIC will manage the fund in accordance with the requirements of the Capital Market Authority and will be responsible for arranging part of the development fund of the three sites. SRECO will provide 82,000 square meters of land along with partial contribution towards the fund.
Commenting on the agreement, Abdulrahman Almofadhi, Chairman of the board of directors of SRECO said:
‘’The signing of the Fund Establishment Agreement of the Alinma Alakaria RE Fund is a major milestone for SRECO and its new partnership-based investment strategy. Alinma Investment has been an active partner in the process of devising a detailed, sophisticated financial model that is Shari’a compliant, and 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.”
The new fund mechanism includes a fund manager, a board of directors, a developer, contractors, an executive committee, legislative and regulatory bodies, an auditor, custodian and certified real estate evaluators.
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About Al Akaria Saudi Real Estate Co. (SRECO)
Al Akaria Saudi Real Estate Company is a leading real estate developer in Saudi Arabia and one of the largest publicly listed developers in the Kingdom, trading on the Saudi stock exchange as the Saudi Real Estate Co.
Founded in 1976 by a Royal Decree, the Saudi Real Estate Co. is partially owned by the government of Saudi Arabia through the Public Investment Fund (PIF) with 65% and the Public Pension Agency (PPA) with 5%. From its headquarters in the capital city of Riyadh, the company offers an integrated, full service approach to real estate development, encompassing finance, design, construction, facility and property management.
The company has worked on more than 32 residential, retail and commercial projects. These include many ground-breaking real estate projects in Saudi Arabia, such as Akaria 1, the first commercial centre in the Middle East, the Olaya Akaria Residential Complex, the first closed residential complex in Saudi Arabia and The Plaza, the first smart building in Saudi Arabia. Al Akaria Saudi Real Estate Co. aims to become a flag bearer for the Kingdom’s Vision 2030 by developing new and innovative model communities within the Kingdom and abroad.
For more information, please visit: http://www.al-akaria.com/en/
About Alinma Investment
Alinma Investment, a Saudi closed joint stock company wholly owned by Alinma Bank under CR No. 1010269764, dated 23/06/1430, was established by Alinma Bank with a capital of SAR 1,000,000,000 (One Billion S.R) and a paid up capital of SAR 200 Million to be in the forefront of leading companies in the provision of a full range of Shariah-compliant investment products and services in accordance with the best and latest technology in the field of communication and advanced technological systems.
The Company obtained the Capital Market Authority License No. 37-09134 on April 14, 2009 and launched its operations on January 17, 2010. The Company is currently engaging in many activities, including dealing as Principal and Agent, underwriting, managing investment funds, portfolio management, arrangement, providing advisory and custodial services with respect to securities business.
Media contacts:
For more press information please contact:
TRACCS in Riyadh, KSA:
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Telephone: +966 12 662 5757
FTI Consulting in Dubai, UAE:
Vadia Rai
E: Vadia.Rai@fticonsulting.com
T: 00871 (0)4 437 2110
Debjani Mukherjee
E: Debjani.Mukherjee@fticonsulting.com
T: 00971 (0)4 437 2122
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