SAB Invest, the investment arm of Saudi Awwal Bank (SAB), and Saudi developer Retal have set up a fund worth SAR1.9 billion ($500 million) to develop a mixed-use project in Riyadh.
SAB will contribute up to 50 percent to the fund, the lender said in a statement.
The Capital Market Authority-regulated fund is designed to attract institutional and qualified investors seeking exposure to Riyadh’s real estate market.
Yasser Al-Barrak, chief corporate and institutional banking officer at SAB, said the fund reflects the bank’s commitment to supporting developments that contribute to the kingdom’s urban and economic transformation.
Retal Heights is to be developed on a 19,000-square-metre site in northern Riyadh as a premium mixed-use tower project that will address the capital’s growing demand across the residential, commercial and hospitality sectors.
In a statement to the Saudi stock exchange, Retal said it will undertake the project’s development management, including overseeing design, development, execution, marketing and sales.
The developer will receive SAR126 million in development fees and take an estimated 48 months to complete the project.
Retal Heights is the latest large-scale real estate project announced for the Saudi capital.
Last month asset manager Riyad Capital, Naif AlRajhi Investment Company and Princess Munira bint Abdullah bin Faisal Al Saud, a member of the Saudi royal family, signed an agreement to establish the $400 million Dar Al Salam real estate fund to develop a mixed-use project in Riyadh.
