Gulf Capital, an Abu Dhabi-based investment company, on Wednesday announced entering into Saudi Arabia’s real estate market with an investment of SR1 billion (over Dh900 million).
The company’s first housing project in Saudi Arabia is being launched by its real estate arm Gulf Related, a joint venture between Gulf Capital and Related Companies, the largest privately owned real estate development firm in the US.
“The development involves a multi-million dollar world-class residential compound in Riyadh which is timely and will fill the acute shortage in residential housing in the Kingdom. Studies show that there is a huge demand for housing units in Saudi Arabia, projected at 1.3 million residential units over the next seven years,” Emile Habib, Gulf Related managing director for Real Estate Investment, told reporters.
The first phase of the project, he added, will consist of a residential compound which will be built on the first 157,000 square meters plot with 450 residential units, and expected to be completed by early 2015.
About the fund for the project, Habib told Khaleej Times: “We have already raised the funds for the project. The funds include both equity and borrowing from a Saudi bank.”
He further added Gulf Capital has acquired two strategically-located plots of land, totaling an area of almost 300,000 square meters where the project will be built. “The plots are located in the growing North Western part of Riyadh on the Salboukh Highway. The new development will be conveniently located about ten minutes from King Abdullah Financial District and twenty minutes from King Khalid International Airport.”
Commenting on the launch of this project, Dr Karim El Solh, CEO of Gulf Capital and Co-Managing Partner of Gulf Related, in a statement, said: “We are proud to be launching this SR 1 billion marquee project in Riyadh to cater to the growing residential needs in the Kingdom.”
“We have been studying the Saudi Arabian real estate market extensively and have concluded that there is significant demand for residential compounds in Riyadh.”
El Solh added studies suggest that there was currently a shortage of over 100,000 units of residential facilities for expatriates in the capital. “Gulf Related, our real estate joint venture, intends to cater for this growing need by launching one of the largest and most appealing residential compounds in Riyadh. This development is in line with our vision to pursue marquee real estate development opportunities across the region which will contribute significant, stable income to Gulf Capital and its shareholders,” he explained.