Arab News, Saturday, Sep 18, 2021 | Safar 11, 1443
Saudi Real Estate Co. to raise $426.4m to finance Qiddiya, Roshan projects
Saudi Arabia:
Saudi Real Estate Co. (Al
Akaria) plans to raise SR1.6 billion ($426.4 million) via priority rights issue
to finance projects and plans including Qiddiya, Roshan and other major projects
related to Vision 2030, CEO Ibrahim Al-Alwan confirmed in an interview on
Tuesday.
This is a great opportunity to link the expected
growth of our performance with the pace of major projects, and thus the need to
increase capital, he said.
Al Akaria announced on Tuesday in a filing on
Tadawul, it is considering issuing priority rights to finance its future
projects, and the company’s board decided on Monday to present the proposal at
an extraordinary general assembly.
The board also approved the appointment of NCB
Capital as financial adviser.
The aim is to finance and implement Al
Akaria’s future plans and projects and expand its various activities, Al-Alwan
told Al Arabiya.
He said the great momentum in the Saudi real
estate market provides an opportunity for the oldest real estate company in the
Kingdom to keep pace with the growth of Riyadh, which is witnessing a rapid
infrastructure expansion.
Al Akaria CEO also pointed out that the company
intends to restore and revive some of its previous projects, and build again in
distinctive locations in Riyadh. There are many new projects under study, he
said.
As residential projects in the Kingdom are
focusing on the quality of life, Al Akaria is looking to launch a wide range of
quality services in the next phase, part of which will be investment in the
office real estate, he added.
Al Akaria chief pointed out that making profits in
real estate projects takes between two to three years, due to which companies
have to rely on off-plan sales, which has become part of the business
fundamentals in the real estate sector, and one of the solutions to early
results in a faster way and reduce financial burdens.