A real estate fund for two billion riyals to develop projects in Riyadh, Dammam and Khobar

Yesterday, His Highness Real Estate Company signed an agreement to establish a real estate investment fund to develop a qualitative real estate project on developed lands acquired by the fund in the city of Riyadh with an area of ​​(414,324) square meters, then building more than (800) housing units on it.
According to the company’s statement on the circulation of Saudi Arabia, the fund acquires lands owned by His Highness the Real Estate Company in the cities of Dammam and Khobar, while the project size exceeds 2 billion riyals, and His Highness Real Estate Company has been appointed as a project developer in exchange for the fees of development management by 10% of the development costs.
The company noted the signing of an agreement between the Real Estate Company, Al -Jazeera Capital and His Highness International Investment Company to establish a real estate investment fund to acquire lands in Riyadh, an area of ​​(414,324) square meters, then build more than (800) housing units on it in addition to the acquisition of lands owned by His Highness Real Estate, with an area of ​​”48,175″ square meters located in the city of Dammam, and the land in the city of Khobar with an area of ​​”8,850″ square meters, as the project size exceeds 2 billion riyals.
The agreement was signed yesterday, while His Highness the Real Estate Company was appointed as a developer for the project in exchange for obtaining a 10% development management fees of development costs, provided that the fund pays the value of the lands of His Highness Real Estate amounting to 90,673,303 riyals in kind in kind by 78% by issuing in -kind units in the fund for the benefit of the company His Highness Real Estate with 7,045,315.6 Investment units, with an amount of 70,453,156.4 riyals, with a nominal value per unit 10 riyals, after completing the regular procedures for establishing the fund, and cash by 22% in the amount of “20,220,146.6” riyals paid by the fund according to a check certified in the name of His Highness the Real Estate company delivered when emptying.
The percentage of His Highness Real Estate will be 26.2% of the property rights in the fund, which represents the fees of the development department in addition to the in -kind payment of the lands of the above -mentioned highness.
The contract period is 4 years swallowing, and the project is expected to have a positive impact on the company’s results as of the establishment of the fund.