Saudi’s Jadwa announces launch of $266m Riyadh real estate fund
The investment company says the fund’s goal is to develop more than 1,500 residential units across Riyadh
Saudi Arabia-based Jadwa Investment has announced the launch of its AlDar Investment Fund in partnership with AlMajdiah Group and Riyad Bank.
The AlDar Investment Fund is a closed, Shariah-compliant real estate investment fund with a total volume of SR 1 billion (USD 266 million) and a fund term of three years plus two extensions of one year.
Saudi’s Jadwa Investment is launching a real estate fund worth $ 750 million
The Real Estate Investment Fund is expected to grow to $ 2.7 billion through follow-up
Jadwa said in a statement that the fund has received strong investor demand.
The aim of the fund is to develop more than 1,500 residential units in several prime locations in Riyadh through the construction of several high-quality residential complexes for households with medium to high incomes.
Jadwa and AlMajdiah said that in line with various government initiatives launched through the Vision 2030 Housing Program to enable home ownership and expand the residential real estate sector, they want to serve the growing demand for housing units.
Tariq Al-Sudairy, Managing Director and CEO of Jadwa Investment, said: “The launch of the AlDar Investment Fund continues our commitment to offer our clients diverse investment opportunities across different asset classes. We have been very active in the local real estate market, where we see solid fundamentals for investing, and we are particularly proud of our partnership with the AlMajdiah Group. ”
Lower property taxes encourage activity in the Saudi real estate market
Knight Frank said the recent decision to exempt real estate transactions from 15% VAT has helped preserve the residential sector
Haitham Al-Ghannam, Managing Director and Head of Real Estate at Jadwa Investment, added: “The record demand during the fund’s offer period shows the appeal of today’s local residential real estate market, especially in Riyadh, where we want to continue expanding. ”