By Akanimo Sampson
In partnership with Tatweer Holding Group, Riyad Bank, and Bank Albilad, iyadh-based Jadwa Investment has announced the launch of its Real Estate Investment Fund (REIF).
The objective of the fund is to provide investors with a stable stream of income distributions and capital appreciation over the medium and long term through the acquisition of high-quality core income-generating real estate assets in Saudi Arabia.
REIF achieved an initial closing at a total value of SR2.8 billion ($750 million), and is expected to reach an aggregate size of SR10 billion through its follow-on deployments.
The fund’s acquisitions have been funded through a combination of equity subscriptions totaling approximately SR1.5 billion, along with around SR1.3 billion in debt financing from Riyad Bank and Bank Albilad.
The fund’s real estate development partner is Tatweer Holding Group.
Managing Director and CEO of Jadwa Investment, Tariq Al-Sudairy, said “the launch of Real Estate Investment Fund comes as part of our commitment to deepen our investment activity in the Saudi real estate market, expand our range of offerings, and provide compelling investment returns to our clients.”
Managing Director and head of Real Estate at Jadwa Investment, Haitham Al-Ghannam, adds “the fund reflects our growth momentum and successful partnerships with leading real estate market players, such as Tatweer Holding Group, Riyad Bank and Bank Albilad. With stable annual distributions and significant capital appreciation potential, REIF is expected to deliver differentiated returns for our clients.”
The initial portfolio of the fund consists of several properties in the city of Riyadh.
Al Nakhlah Residential Compound is located in the Qurtubah district on a land area of 259,797 sq m, consists of 1,136 residential units. REIF Flats, a residential apartment complex, is built on a land area of 8,787.5 sq m and consists of 133 apartments. The two properties were financed in partnership with Riyad Bank.
Most recently, the fund acquired seven commercial and service towers at the Laysen Valley property in Riyadh. The seven towers, with a net leasable area of 42,095 sq m, are leased and have been financed in partnership with Bank Albilad.
Jadwa Investment has assets under management of SR35 billion in public markets, private equity, real estate, private credit, and fixed income.
