Saudi Arabia Jadwa Launches $ 66.6 Million Fund to Invest in Real Estate Market

Saudi asset management and advisory firm Jadwa Investment has set up a real estate fund worth 250 million Saudi Riyals ($ 66.6 million) to invest in the development of several shopping complexes in Riyadh and in Jeddah, with the aim of taking advantage of the growing demand for real estate in the Kingdom.

Al Shorfa Investment Fund is a Sharia-compliant real estate investment vehicle with an expected term of five years, Jadwa said Wednesday.

Jadwa, who set up the closed-end investment vehicle in partnership with First Avenue For Real Estate Development Company, manages assets worth 35 billion riyals.

The Al Shorfa investment fund will be of particular interest to investors interested in leading real estate assets in Riyadh and Jeddah.

Tariq Al-Sudairy, Managing Director and CEO, Jadwa Investment

“Al Shorfa Investment Fund will be of particular interest to investors interested in leading real estate assets in Riyadh and Jeddah,” said Tariq Al-Sudairy, Managing Director and Managing Director of Jadwa Investment.

Saudi Arabia is focusing on diversifying the economy as part of its Vision 2030 program which aims to develop local industries and reduce its dependence on hydrocarbons.

The kingdom plans to make Riyadh one of the top 10 economy cities in the world. It is investing $ 220 billion to transform the capital and hopes to attract a similar level of private sector investment, according to Fahd Al Rasheed, chairman of the Royal Commission for the city of Riyadh.

Almost 330,000 square meters of gross rental office space were delivered in Riyadh in the third quarter of this year, the global real estate consultancy says JLL. Meanwhile, in Jeddah, only 40,600 square meters of office park were added during the same period, JLL reported.

The majority of the upcoming stock in the two cities is Category A floor space, according to the consulting firm. Demand was strongest from the government and the banking sectors, which were largely targeting large floor areas in Riyadh, JLL said.

“Our partnership with Jadwa Investment in the Al Shorfa fund aims to provide investors with access to high-end real estate projects … and to develop benchmark properties for the kingdom’s real estate market,” said Nader Al Amri, Managing Director of First Avenue For Real Estate. Development company.

Jadwa Investment will serve as the fund manager while First Avenue For Real Estate Development Company will be the development partner, the statement said.

Al Shorfa Fund has acquired three assets to date, Jadwa said. This is part of a series of real estate development funds that Jadwa launched this year.

In April, Jadwa created a real estate fund worth one billion riyals to develop top-notch residential projects in the kingdom. Al Dar Investment Fund will develop more than 1,500 residential units in Riyadh, through several apartment complexes aimed at middle to upper income households.

Updated: December 22, 2021, 1:03 PM