14 Rabi' I 1445 - 29 September 2023
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Eye of Riyadh
Business & Money | Sunday 17 September, 2023 1:00 pm |

Naif Alrajhi Investment Clinches Prestigious Contract to Develop District One in the King Salman Park Project

Naif Alrajhi Investment group has announced its winning of a real estate development contract for the first real estate investment land parcel in King Salman Park in Riyadh. The project is being undertaken in partnership with the King Salman Park Company for Investment and Real Estate Development, as well as the Saudi Fransi Capital. The new real estate project will be situated within phase one, district one of King Salman Park, covering an area of 290,000 square meters. It will be located west of the Visitors' Center, south of the Royal Arts Complex, and east of King Abdulaziz Road.


This project marks the first ever partnership between the government and private sector, utilizing an innovative financial and operational structure developed through a collaboration between the King Salman Park Company for Investment and Real Estate Development and the Saudi Fransi Capital. The private sector will fully manage the project in accordance with the objectives of Vision 2030. This partnership follows the successful launch and closure of the "King Salman Park Real Estate Development Fund" by the Saudi Fransi Capital and the King Salman Park Company for Investment and Real Estate Development. The private closed investment fund had a total size of SAR 4 billion and is both Shariah-compliant and registered with the regulations of the Capital Market Authority of Saudi Arabia.



Naif Alrajhi Investment group will act as the real estate developer and the master lessee for the entire mixed-use project, which will consist of over 1,500 residential units, 140,000 square meters of rentable office and retail space, a hotel, a school, and public spaces for both religious and community well-being, along with a variety of amenities.


Naif Saleh Al-Rajhi, the Chairman and CEO of Naif Alrajhi Investment group, expressed his enthusiasm for the collaboration, stating: “At Naif Alrajhi Investment we take pride in our innovative and futuristic thinking and development, which begin with our belief and commitment to the Vision 2030. We are honored to have been chosen to work on this opportunity with our partners to develop the first private real estate investment land parcel within King Salman Park. The project is a mixed-use development and is situated in a vital and highly significant area for the future of Riyadh. We aim to develop and manage to the highest standards of professionalism in accordance to the King Salman Park Company for Investment and Real Estate Development’s guidelines and we are confident that this project will be a success, God willing.”


George Tanasijevich, Chief Executive Officer of King Salman Park Foundation, said: “We are proud to partner with the Naif Al-Rajhi Investment and Saudi Fransi Capital. The King Salman Park Real Estate Development Fund will realize our shared vision of driving the sustainable growth and development of King Salman Park and the city of Riyadh, in line with Saudi’s Vision 2030."


Salam Alkhunaizi, CEO and board member of Saudi Fransi Capital, commented: “We are extremely honored and privileged to be part of the iconic King Salman Park development through the launch of this fund, which is another milestone in Saudi Fransi Capital’s continued efforts to provide its investors with the most innovative and diversified investment solutions whilst striving to play a prominent part in the realization of Vision 2030 projects and its various realization programs. With the unique structuring and partnerships established with this fund alongside King Salman Park Company for Investment and Real Estate Development and Naif Alrajhi Investment group, we hope to provide a groundbreaking blueprint on how public-private partnerships can work profitably and efficiently for all especially in the execution and management of large scale and iconic projects such as King Salman Park.”



It is worth noting that King Salman Park, which covers an area of more than 16 square kilometers, has been designed to offer a comprehensive experience that encompasses a diverse range of environmental, cultural, sports, artistic, and entertainment options. This is further reinforced by a creative hub for Small to Medium Enterprises (SME), residential and hospitality offerings, markets, healthcare, and education, all of which aim to contribute to fulfilling the objectives of Saudi Arabia's Vision 2030 under the leadership of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, and HRH Crown Prince Mohammed bin Salman in addition to enhancing the global livability ranking of the city of Riyadh to be one of the top in the world.

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