Arab News, Wednesday, Mar 29, 2023 | Ramadan 7, 1444
Alistithmar Capital inks agreement with Safa Investment Co. to launch $292.9m real estate fund
Saudi Arabia: Alistithmar Capital,
the investment arm of Saudi Investment Bank, has signed an agreement with Safa
Investment Co. to launch several real estate funds – with the first estimated to
be worth $292.9 million.
Both companies will cooperate to help support the
Kingdom’s growth in the real estate sector through funds that target the
residential space in main cities with particular focus on Riyadh.
The funds aim to enhance the growth of the
invested capital through the acquisition of land in the targeted geographical
areas to develop high-quality residential complexes and sell them ready for
habitation.
Khalid Al-Rayes, CEO of Alistithmar Capital,
explained that the company’s cooperation with Safa Investment will open
opportunities to achieve greater returns.
According to Safa Investment Co., the agreement
aims to bridge the gap between demand and supply in the real estate market in
all its sectors through projects that target strategic and vital areas in the
most prominent neighborhoods in Riyadh and other cities.
In March, Alistithmar Capital received approval
from the Capital Market Authority for its Alistithmar Capital Quarterly Dividend
Fund.
Saudi Arabia’s real estate sector is witnessing
massive traction and development with a huge increase in property values.
Real estate prices in Saudi Arabia increased by
1.6 percent in the fourth quarter of 2022, compared to the same period in 2021,
primarily driven by a rise in residential property values
The price of residential properties increased by
2.6 percent in the fourth quarter of 2022, mainly fueled by a 2.7 percent rise
in land plot prices.
Moreover, Saudi Arabia is planning to relax its
property ownership laws for foreigners as the Kingdom eyes attracting
investments into the real estate sector as part of its strategy to diversify its
economy.