14 Rabi' I 1445 - 29 September 2023
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Eye of Riyadh
Business & Money | Sunday 10 September, 2023 1:29 pm |

King Salman Park launches SAR 4 bln fund

The King Salman Park Foundation (KSPF) announced the launch of a SAR 4 billion real estate development fund for King Salman Park.


The fund will focus on developing the first real estate investment inside the park, according to the Saudi Press Agency (SPA).


The private sector will manage and finance the fund entirely, with King Salman Park serving as the main developer, Saudi Fransi Capital (SFC) acting as the fund manager, and Naif Alrajhi Investment being the primary real estate developer and tenant for the project, according to KSPF.


The investment fund is Sharia-compliant and registered in accordance with Capital Market Authority (CMA) regulations. It is the first of its kind in terms of public-private collaboration.


The innovative investment fund will develop the first real estate investment zone within King Salman Park, covering an area of over 290,000 square meters. This zone is located in the first phase of the park and is bordered by the Visitor Center to the west, the Royal Arts Complex to the south, and the King Abdul Aziz Road to the east.


The partnership is unique in its combination of key partners and the capital structure of the fund, creating an innovative proposition of risks and rewards for both equity and debt stakeholders.


This balance aligns long-term and expected capital returns for the King Salman Park project with a steady and consistent income stream in the short and long term, KSPF said.


The project is a mixed-use real estate development with over 1,500 residential units, including apartments and villas designed in the Salmani style with park views.


It spans a total area of 140,000 square meters dedicated to hotel spaces, retail, office buildings, a school, and various service, educational, health, sports, recreational, and social facilities.


The office spaces will be interconnected with residential areas, catering to the needs of business professionals and visitors to the park. Retail spaces will be strategically distributed throughout the park to fulfill the essential needs of its residents.


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