King Salman Park to develop $1.1bn mixed-use project

The King Salman Park Foundation has joined hands with Saudi developer Naif Al Rajhi Investment Company for the launch of its new mixed-use real estate development project at a total investment of SAR4 billion ($1.1 billion).


Spread over a 290,000-sq-m area within the Park premises, the project will boast over 1,500 residential units that will include Salmani-style apartments and townhouses overlooking the park, along with 140,000 sq m of gross leasable areas for offices and retail, hotels, schools, and several educational, health, sports, recreational and social facilities.


According to the Foundation, the office spaces will feature central Grade A and flexible office options, fully blended within residential plots, while the hospitality offerings will cater to business tenants and park visitors. 


Retail space will be distributed throughout the public realm, covering the essential needs of residents, it stated.


Unveiling the project, the Foundation said it has launched the King Salman Park Real Estate Development Fund that will focus on the development of the first real estate investment in plots of land in the park. This was the first public-private partnership project managed and funded entirely by the private sector. 


Saudi Fransi Capital is the fund manager, while King Salman Park Investment and Real Estate Development Company is the master developer, and Naif Al-Rajhi Investment Company is the real estate developer and master lessee of the project.


The Foundation launched the King Salman Park Real Estate Development Fund that will focus on the development of the first real estate investment in plots of land in the park.


The fund's working mechanism is a model of cooperation between public and private entities, with the latter responsible for managing and financing the fund. It focuses on the development of the first real estate investment in plots of land in the park.


This partnership is unique, linking key partners and the fund's capital structure to create an innovative risk and reward proposition for both equity and debt stakeholders, balancing the King Salman Park project's long-term and projected capital returns with a consistent and regular income flow in the short and long term, said a top official.


"This partnership represents a major milestone for us," remarked George Tanasijevich, the CEO of King Salman Park Foundation.


"We are thrilled to launch this unique collaboration and excited to work alongside our partners and investors and all those involved in making our ambitious vision a reality. The creation of the fund is a sign of our ongoing commitment to creating a world-class destination that will enrich the lives of residents and visitors alike, and build a legacy of urban regeneration project for generations to come," stated Tanasijevich. 


King Salman Park, one of Riyadh’s four mega projects launched by Saudi King Salman in 2019, covers 16.7 sq km in a strategic location connected to several main roads, and linked to Riyadh Metro and the Riyadh Bus station network, making it easily accessible.


It is one of the world's most ambitious and transformative urban regeneration projects, harmoniously bringing together people, nature and a city, a green oasis in the heart of Riyadh that supports the goals of Saudi Vision 2030 to create a vibrant and healthy society. The park will also support Riyadh's global profile, contributing to making it one of the world’s most liveable cities.


"We believe it will attract more businesses and residents to Riyadh, contributing to the city’s overall growth and to the realization of the Saudi Vision 2030," he added.


According to him, the investment fund will undertake the development of the first real estate investment site in King Salman Park, covering more than 290,000 sq m area. 


The project site is in the early stages, in district-one of King Salman Park, west of the Visitor Pavilion, south of the Royal Arts Complex and east of King Abdulaziz Road, it stated.


Saudi Fransi Capital CEO Salam Alkhunaizi said: "We are privileged to be part of the iconic King Salman Park project through the launch of this fund. We are hoping to provide a pioneering model on how public-private partnerships can work profitably and effectively for all, especially in implementing and managing a huge and exceptional project such as King Salman Park."


Group Chairman and CEO Naif Saleh Al Rajhi, expressing confidence in the success of the project, said: "Our partners are unified 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 till execution."


Foundation's Investment and Partnership Attractions Executive Director Fawaz Almalik said: "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."


King Salman Park will become a unique destination for citizens, residents and tourists by offering new lifestyles that enhance the quality of life and enable visitors to engage in new experiences and live unforgettable moments, he added.-TradeArabia News Service




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