ROSHN Group, a Public Investment Fund (PIF) giga-project, plans to increase its current land bank of 100 million square meters, CNBC Arabia reported, citing Oussama Kabbani, Group Chief Development Officer (GCDO).
The plan aligns with the target set by the company’s board of directors and Saudi Arabia’s Crown Prince, to build 395,000 housing units, he added.
ROSHN also seeks to expand its business portfolio with multi-purpose projects, Kabbani noted, adding that a large number of projects in Saudi cities will be on the table for approval by 2024.
ROSHN is Saudi Arabia’s largest real estate developer in terms of land bank and one of the region’s most prominent companies.
The Saudi company is currently allocating land plots to peer real estate developers for monetization, in line with ROSHN’s criteria, Kabbani said, adding that ROSHN set an example and a reference for the real estate development across the Kingdom.
Additionally, ROSHN board of directors is constantly reviewing studies for potential projects, he indicated.
“We will build a number of manufacturing facilities for the ready-made buildings, and we are studying partnerships or acquisition deals with companies exporting the related materials, as manufacturing ready-made buildings will provide Saudi citizens with a more competitive cost,” he noted.
ROSHN looks forward to expand its investment portfolio to include properties for rent and not only for sale, in addition to other commercial projects with the aim of profitability or cost-reduction for Saudi consumers.
The PIF-backed company signed SAR 37 billion worth of contracts to finance its outstanding projects, and it can secure bank borrowings if necessary.
ROSHN sold nearly 6,000 housing units last year, and received an overwhelming demand this year, said Kabbani, expecting the company to dominate 20% of the mid-market segment over the coming years.
Sedra by ROSHN project is 25% complete, and first phase units are being delivered, while the second phase is under construction. Kabbani indicated that contractors will be invited for new bids in months.
Kabbani also noted that floating ROSHN shares in an initial public offering (IPO) is the PIF decision, adding that ROSHN will have a large market weight in case of going public.
“Only the PIF can disclose information about the company’s capital,” he noted.