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Ezdihar Real Estate Development has launched a SAR 1.1 bn real estate fund with Al Istithmar Capital — a wholly owned subsidiary of Saudi Investment Bank (Saib), according to a statement (pdf) yesterday. The fund aims to develop a landmark business park in Riyadh.
In detail: The development, which spans a 103k sqm “prime plot,” is situated on the King Saud University campus in Riyadh along Prince Turki I Road. It will be designed as a “Grade A office park” with direct connections to King Khalid International Airport and major projects in the capital. The location has been “strategically chosen to attract leading businesses looking for premium office space in a dynamic area.”
A SMART INVESTMENT- Grade A office occupancy levels in Riyadh hit 98%, which is among the highest globally, a 3Q 2024 report (pdf) by real estate services provider Savills showed. “Activity remains so strong that under-construction buildings have recorded healthy pre-commitment levels,” it said.
About the firms: Ezdihar Real Estate Development — a part of Ezdihar Holding under the Fawaz Alhokair Group — aims to develop over 1 mn sqm of leasable area and deliver 2k residential units across major cities in the Kingdom by 2030. Al Istithmar Capital is the investment arm of Saib.
Riyadh’s rising demand for offices has been luring many: Earlier this year, SNB Capital and Alshegrey Investment Group launched the SAR 1 bn Al Ahli Al Basateen Real Estate fund. The SNB (the investment banking arm of SNB, the kingdom’s largest bank by assets) and Alshegrey are looking to capitalize on rising demand in Riyadh for offices and commercial real estate.
