AlIstithmar Capital & AlOula sign MOU to establish RE investment fund
During its participation in the “Restatex Riyadh Exhibition 2016”, the Al- Oula Real Estate Development Company signed a memorandum of understanding with the Al-Istithmar for Financial Securities and Brokerage Company (Al-Istithmar Capital) to establish a real estate investment fund, aiming to develop the residential tower at the “Wajihat Ajdan Albahriya” in Khobar City.
This step aims to build a strategic relation between the Al- Oula Real Estate Development Company, which will provide services for managing the development, implementation and supervision of the project, and the Al-Istithmar Capital, which will organize the project’s financial structuring, establish the real-estate investments fund and obtain its license from the Saudi Capital Market Authority, in addition to managing the Fund’s money and directly supervising its performance. This fund is considered the beginning of a series of real estate investment funds, which the two companies intend to launch in the coming years.
The projects spans over an area of 6,800 sqm and each tower consists of 40 floors containing 180 housing units, 90% of which have a unique view of the sea, and each tower provides distinguished and unique services to give an unrivalled experience for the residents, in addition to luxurious restaurants, modern gyms, swimming pools, and a spa.
Ibrahim Al-Alwan, Chief Executive Officer of the Al-Oula Company, said “the project will provide an innovative and classy environment, in accordance with a modern style for a different and renewable life in the Kingdom. We believe in the necessity of creating integrated commercial and residential products to conform to the development occurring in Saudi society and to meet the desire of a segment of citizens seeking destinations characterized by their privacy and luxury.”
He added: “The sustainability of the Saudi economy, the population growth and the changing lifestyle give positive signs of the increasing demand for this type of real estate products, which leads us to develop new products in an integrated range of real estate solutions in the Kingdom, including solutions regarding design, construction, project management, property management and its operation.”
Al-Alwan noted that the “Wajdn” project is an introduction to a collection of vital and quality projects that will be developed by Al-Oula in the Kingdom. This project will constitute a paradigm shift at the level of the residential units and the concept of entertainment in Eastern Province and the Kingdom.
CEO of Istithmar Capital, Hisham Abu Jame’ said: “Istithmar Capital believes in successful partnerships with real estate developers in the Kingdom to support them through funding their future real estate projects”. He commended this move and considered it vital to both parties in establishing a strategic partnership regarding the funding of future real estate projects where Al Istithmar would handle the projects financial structuring, create a real estate fund licensed by the Capital Markets Authority of Saudi Arabia, manage the fund and supervise its performance. AlOula continues to develop real estate in the Kingdom and spearhead and supervise new projects as well.
He added: “Al Istithmar Capital has established strategic partnerships since 2014 with pioneer developers and studied diverse real estate opportunities. We were successful in launching two real estate funds in 2015 with a total capital of 1 billion SAR and we are further expanding and studying the launch of more real estate funds in the future”.
Abu Jame’ has also commended the extensive experience of AlOula in the Saudi Market, its highly experience staff and great reputation in real estate development as one of the most pioneering developers in KSA and also its wide base of clients in both real estate and commercial sectors.