Riyad Capital in alliance with Naif Al-Rajhi Investment Company Tuesday announced the closure of subscriptions in the private placement of Riyad Real Estate Income Fund ahead of schedule, after raising the target capital of SR500 million.
Riyad Real Estate Income Fund, the latest Shariah-compliant investment product offered to Riyad Capital’s clients, is described as the first of its kind. The fund has an open-ended capital of 20 years with the possibility of extension. The fund will invest in income generating real estate projects, including showrooms, office spaces, residential compounds as well as other profitable investments that enable the fund manager to distribute sizable annual dividends.
In support of the fund’s objectives and success, Riyad Capital entered into an alliance with Naif Al-Rajhi Investment Company, in cooperation with Memar Development and Construction Company to establish Erad Real Estate Development Company.
Erad will render real estate development and project management services for Riyad Real Estate Income Fund.
Addressing a press conference, Riyad Capital CEO Ali Al-Gwaiz, said: “The move is a step forward within the company’s strategy of offering unique investment products with added
values, while carefully and responsibly providing the required resources for its success. Hence it was found important to enter into the alliance with a vast array of experience and specializations in developing and managing successful real estate projects.”
Naif Saleh Al-Rajhi, CEO of Naif Al-Rajhi Investment Company, explained that this alliance holds the main elements of the real estate market in an organized structure, which enjoys a variety of expertise in planning, finance, development and management.
He pointed out that the strategy is to acquire high quality income generating real estate assets, and to develop and operate new real estate projects as part of the fund’s income-generating portfolio.