RIYADH: Saudi Arabia’s Alistithmar Capital is teaming up with Ezdihar Real Estate Development Co. to create an SR1.1 billion ($293 million) property fund in a move that will benefit Riyadh’s commercial and office landscape.

In a statement, Alistithmar Capital, the investment subsidiary of Saudi Investment Bank, announced that the aim is to boost investors’ capital growth by obtaining usufruct rights to a 103,000 sq. m parcel of land within King Saud University’s premises on Prince Turki Al-Awwal Road in Riyadh, to develop the land into a revenue-generating commercial office complex.

The firm’s CEO, Khaled Abdulaziz Al-Rayes, commented that the partnership with Ezdihar seeks to pursue shared objectives in real estate and offer investors opportunities tailored to their goals and the evolving real estate landscape.

He added that his organization remains dedicated to offering high-quality investment prospects for real estate investors through meticulously structured funds tailored to each project’s requirements. This approach ensures maximum benefits and optimal returns on investment.

For his part, Abdulmohsen Fawaz Al-Hokair, CEO of Ezdihar, said: “Through our strategic partnership with Alistithmar Capital, we aim to provide more unique investment opportunities for investors in the real estate sector, in line with our company’s efforts to offer quality products that meet customer expectations.”

The recent deal recalls the agreement made by Alistithmar Capital in March 2023 with Safa Investment Co. to launch multiple real estate funds. 

The first reserve, estimated at $292.9 million, marked their initial collaborative efforts in the sector.

It was announced at that time that both companies would cooperate to help support the Kingdom’s growth in the property field through funds that target the residential space in central cities with a particular focus on Riyadh.

The reserves aim to enhance the growth of the invested capital by acquiring land in the targeted geographical areas to develop high-quality residential complexes and sell them ready for habitation.  

Additionally, Forbes Middle East ranks Alistithmar Capital 6th among the largest asset management firms in Saudi Arabia and 11th in the Middle East. 

According to Forbes Middle East’s 2024 list, their total assets under management are approximately SR32 billion.