“First Avenue” signs a non-binding letter of intent with “Awj” to establish a real estate fund

Yesterday, First Avenue Real Estate Development Company signed a non-binding letter of intent with Awj Real Estate Development and Investment Company.
The company said in a statement on Saudi Tadawul: The signing of the letter of intent for the purpose of establishing a real estate fund for the purpose of purchasing and developing commercial, office and hotel projects.
According to the company, the fund is planned to invest in four real estate assets, namely La Perle West, La Perle East, La Perle Residential Land, and La Perle Hotel Land.
The company’s ownership in the fund is scheduled to range between 40% and 50%, and the ownership of AWJ Company in the fund is 50% and 60%.
The letter of intent includes other usual provisions such as exclusivity during the negotiation period and confidentiality. It should be noted that the Fund and its provisions are still under negotiation.
The company will announce any developments in a timely manner, including when signing the acquisition agreements and establishing the fund.
She stated that the duration of the memorandum is one month from the date of signing, while this deal aims to enhance cooperation between the parties concerned and provide a joint ownership structure that contributes to achieving the targeted growth for both parties.