The King Salman Park Foundation announced the launch of the King Salman Park Real Estate Development Fund, a mixed-use real estate development project that focuses on the development of the first real estate investment in plots of land in the park.
The fund’s working mechanism is a model of cooperation between public and private entities, with the latter responsible for managing and financing the fund.
This is the first public-private partnership project managed and funded entirely by the private sector. Saudi Fransi Capital is the fund manager, while King Salman Park Investment and Real Estate Development Company is the master developer, and Naif Al-Rajhi Investment Company is the real estate developer and master lessee of the project.
Issuing a press release on the occasion, the foundation said that this partnership is unique, linking key partners and the fund’s capital structure to create an innovative risk and reward proposition for both equity and debt stakeholders, balancing the King Salman Park project’s long-term and projected capital returns with a consistent and regular income flow in the short and long term.
“This partnership represents a major milestone for us,” said CEO of King Salman Park Foundation George Tanasijevich.
“We are thrilled to launch this unique collaboration and excited to work alongside our partners and investors and all those involved in making our ambitious vision a reality. The creation of the fund is a sign of our ongoing commitment to creating a world-class destination that will enrich the lives of residents and visitors alike, and build a legacy of urban regeneration project for generations to come. We believe it will attract more businesses and residents to Riyadh, contributing to the city’s overall growth and to the realization of the Saudi Vision 2030,” he added.
The investment fund will undertake the development of the first real estate investment site in King Salman Park, covering an area of more than 290,000 square meters. The project site is in the early stages, in district-one of King Salman Park, west of the Visitor Pavilion, south of the Royal Arts Complex and east of King Abdulaziz Road.
CEO and Board Member of Saudi Fransi Capital Salam Alkhunaizi said: “We are privileged to be part of the iconic King Salman Park project through the launch of this fund. We are hoping to provide a pioneering model on how public-private partnerships can work profitably and effectively for all, especially in implementing and managing a huge and exceptional project such as King Salman Park.”
Chairman and CEO of Naif Al-Rajhi Investment Group Naif Saleh Al-Rajhi expressed confidence in the success of the project, “especially since our partners are unified in vision and objectives which starts with our belief and commitment to Vision 2030 and trickles down to the smallest details of our work including design and planning till execution”.
Investment and Partnership Attractions Executive Director at King Salman Park Foundation Fawaz Almalik said: “Our new innovative structuring investment fund offers a unique opportunity for investors to participate in the King Salman Park Project, which will deliver attractive returns for our investors, achieve financial sustainability for the project, while also driving positive social and economic impact for Riyadh and Saudi Arabia.”
The licensed investment fund is Sharia-compliant, registered under Saudi Arabia’s Capital Market Authority regulations fund.
At a total value of approximately SAR4 billion, this a mixed-use real estate development project will comprise over 1,500 residential units that will include Salmani-style apartments and townhouses overlooking the park, with 140,000 square meters of gross leasable areas for offices and retail, hotels, schools, and several educational, health, sports, recreational and social facilities.
The office spaces will feature central Grade A and flexible office options, fully blended within residential plots, while the hospitality offerings will cater to business tenants and park visitors. Retail space will be distributed throughout the public realm, covering the essential needs of residents, according to the press release.
King Salman Park is one of the world’s most ambitious and transformative urban regeneration projects, harmoniously bringing together people, nature and a city, a green oasis in the heart of Riyadh that supports the goals of Saudi Vision 2030 to create a vibrant and healthy society. The park will also support Riyadh’s global profile, contributing to making it one of the world’s most liveable cities.
The park offers not only the largest green space in Riyadh, it also provides a rich variety of cultural, arts, entertainment, sports, recreational, commercial, and residential facilities, together with attractions including the Royal Arts Complex, the Visitor Pavilion and several museums, all of which will redefine the concept of urban parks in the region.
With these diverse options and benefits, King Salman Park will become a unique destination for citizens, residents and tourists by offering new lifestyles that enhance the quality of life and enable visitors to engage in new experiences and live unforgettable moments.
King Salman Park, one of Riyadh’s four mega projects, was launched by Custodian of the Two Holy Mosques King Salman Bin Abdulaziz on March 19, 2019. It covers 16.7 square kilometers in a strategic location connected to several main roads, and linked to Riyadh Metro and the Riyadh Bus station network, making it easily accessible.
Source: Saudi Press Agency
