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The financial centre in Riyadh to put some of its income-generating buildings into a trust
October 21, 2024 | Staff Reporter | KSA | Property Management
Saudi Arabia’s King Abdullah Financial District (KAFD) is planning to raise $700 million through a real estate investment trust (REIT) to fund further development, according to reports. The financial centre real estate project in Riyadh will put some of its income-generating buildings into a trust to offer a stake to investors through a listing on Tadawul, the Saudi stock exchange.
The final amount raised could be closer to $750 million, reports said, citing people familiar with the matter, with Citigroup Inc, HSBC Holdings Plc and Al Rajhi Capital hired as advisors on the deal.
Saudi sovereign wealth fund PIF took over the real estate development in 2016 following its launch in 2007. The CEO of the company developing and managing KAFD, Guatam Sashittal, stepped down last month to be replaced by PIF investment manager Mohammed Alsudairy.
KAFD, one of the largest developments in Riyadh, is being constructed north of the Saudi capital, spanning 1.6 million square meters. The project will feature over 2,900 residential properties and 6,100 luxury five-star hotel rooms.
As part of Saudi Vision 2030, KAFD aims to become a unique zone with competitive regulations, including visa exemptions and a direct train connection to King Khalid International Airport. Starting in January, Saudi Arabia mandated that global corporations establish their regional headquarters in Riyadh to qualify for government contracts. To support this, the Kingdom has also introduced a 30-year tax incentive package to facilitate the establishment of these headquarters.
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