Riyadh, September 10, 2023, The King Salman Park Foundation recently unveiled the King Salman Park Real Estate Development Fund, a mixed-use real estate development initiative that focuses on the creation of the first real estate investment in plots of land in the park. The way the fund operates is an example of how public and private organizations can work together. The business sector is in charge of managing and funding the fund. This is the first initiative under a public-private collaboration that is wholly overseen and funded by the private sector. King Salman Park Investment and Real Estate Development Company is the project's master developer; Naif Al-Rajhi Investment Company is the real estate developer; and Saudi Fransi Capital is the fund manager.
The King Salman Park project's long-term and projected capital returns are balanced with a consistent and regular income flow in the short and long terms, according to the foundation, which issued a press release on the occasion. This partnership, it was noted, is special because it links important partners and the capital structure of the fund to create an innovative risk and reward proposition for both equity and debt stakeholders.
King Salman Park Foundation CEO George Tanasijevich described the relationship as a significant turning point for the organization.
We are happy to begin this special partnership and eager to collaborate with our partners, investors, and everyone else engaged in realizing our lofty ambition. The establishment of the fund demonstrates our continuous dedication to developing a world-class tourist destination that will improve the lives of both locals and visitors and leave a lasting legacy of urban regeneration projects for future generations. We think it will draw more people and businesses to Riyadh, fostering the city's expansion and advancing the Saudi Vision 2030, he continued.
The investment fund will create King Salman Park's first real estate investment site, which will span more than 290,000 square meters. In district one of King Salman Park, west of the Visitor Pavilion, south of the Royal Arts Complex, and east of King Abdulaziz Road, the project site is still in the planning stages.
Salam Alkhunaizi, CEO and a member of the board of Saudi Fransi Capital, stated: "We are fortunate to be a part of the renowned King Salman Park project through the creation of this fund. In particular, while executing and administering a massive and outstanding project like King Salman Park, we hope to offer a trailblazing example of how public-private collaborations can operate commercially and efficiently for all.
Naif Saleh Al-Rajhi, chairman and chief executive officer of the Naif Al-Rajhi Investment Group, expressed optimism for the project's success, noting in particular that "our partners are united in vision and objectives, which starts with our belief and commitment to Vision 2030 and trickles down to the smallest details of our work, including design and planning until execution."
The King Salman Park Foundation's Fawaz Almalik, Executive Director of Investment and Partnership Attractions, stated: "Our new innovative structuring investment fund offers a unique opportunity for investors to participate in the King Salman Park Project, which will deliver attractive returns for our investors, achieve financial sustainability for the project, while also driving positive social and economic impact for Riyadh and Saudi Arabia."
The authorized investment fund is registered with Saudi Arabia's Capital Market Authority and complies with Sharia law.
This mixed-use real estate development project, which is estimated to be worth SAR4 billion, will include over 1,500 residential units, including townhouses and apartments in the Salmani style that overlook the park, as well as 140,000 square meters of gross leasable space for offices and retail, hotels, schools, and a number of educational, health, sports, recreational, and social facilities.
While the hospitality alternatives will serve both business tenants and park visitors, the office spaces will offer central Grade A and flexible office options that are seamlessly integrated inside residential plots. According to the press release, retail space will be dispersed throughout the public realm to meet people's basic needs.
King Salman Park, a green oasis in the middle of Riyadh that supports the objectives of Saudi Vision 2030 to create a vibrant and healthy society, is one of the most ambitious and revolutionary urban regeneration projects in the history of the globe. The park will help raise Riyadh's status internationally and make it one of the most livable cities in the world.
The park offers not only the most green space in Riyadh but also a wide range of recreational, commercial, residential, and cultural facilities. Attractions like the Royal Arts Complex, the Visitor Pavilion, and various museums are also present, all of which will change how people in the area think of urban parks.
By providing new lifestyles that improve quality of life and allow visitors to have memorable experiences, King Salman Park will become a special destination for citizens, residents, and tourists with these many possibilities and advantages.
Custodian of the Two Holy Mosques King Salman Bin Abdulaziz inaugurated King Salman Park, one of Riyadh's four megaprojects, on March 19, 2019. It is conveniently located in a 16.7-square-kilometer area that is strategically connected to many major routes, the Riyadh Metro, and the Riyadh Bus Station network.
