Gulf Related invests $267m into KSA housing market
Joint venture hope to capitalise on Riyadh's growing ex-pat population
Gulf Capital has announced its formal entry into the Saudi Arabian residential market with a $267m (SAR 1bn) investment programme through its real estate development arm, Gulf Related, according to a statement from the company.
Gulf Related is the joint venture between Gulf Capital and Related Companies, a large real estate development firm in the US.
The development involves a multi-million dollar residential compound in Riyadh which hopes to meet the demand of the city’s growing ex-patriate community.
Gulf Capital has acquired two plots of land totaling an area of almost 300,000m² where the project will be built.
The plots are located in the growing North Western part of Riyadh on the Salboukh Highway.
Commenting on the launch of the project, Dr. Karim El Solh, CEO of Gulf Capital and co-managing partner of Gulf Related said,“We are proud to be launching this $267m (SAR1bn) 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,” he added.
The new development will be located about ten minutes from King Abdullah Financial District and twenty minutes from King Khalid International Airport.
The first phase of the project will consist of a residential compound which will be built on the first 157,000m ² plot and is expected to be completed by early 2015.
This will see 450 residential units built in a landscaped environment that will aim to provide first-class facilities.
Studies suggest that there is currently a shortage of over 100,000 units of residential facilities for expatriates in the Capital.
Emile Habib, managing director of Gulf Related says: “The size of this project and the extent of our financial commitments reflect our strong belief in the residential sector in Saudi Arabia, which is poised to grow significantly in the coming years.
“This high-end residential compound, in the up and coming Salboukh area in north-west Riyadh, is strategically located and will cater to the growing need for expatriate housing in the Capital.
“It reflects the sort of exclusive, high-end development ventures pursued in the years ahead by Gulf Related in the Middle East,” he added.