Sign in
ANB Capital has tapped Tadawul-listed Riyadh Development Company (ARDCO) as the infrastructure developer of a planned SAR 2.1 bn real estate fund, according to a disclosure to Tadawul. The establishment of the fund — which will be owned and managed by ANB Capital — is still pending the approval of the Capital Market Authority. The involved parties are yet to disclose the value of the four-year contract, the statement reads.
Developer + unitholder: Riyadh Development will work to develop 1.8 mn sqm of land east of Riyadh under the agreement. It will also own a 10% stake, and expects to develop and exit the project within the four-year contract period. “The strategic location of the Land offers significant potential for future development of commercial, office, and residential real estate projects,” the statement reads.
Fund breakdown: The fund will be capitalized at SAR 2.1 bn, Riyadh Development said. The land held by the fund is valued at SAR 1.93 bn, while the developments are estimated to be worth SAR 340 mn, giving the fund a total asset value of SAR 2.26 bn. The internal rate of return from the fund is expected to be at 15%.
