Swicorp closes Al-Dhawahi Real Estate Fund
Development fund raises $20.8mn in equity and structures $18.1mn loan
Swicorp, a leading Saudi investment banking, private equity and asset management firm focused on the MENA region and Turkey, has closed a private placement subscription for the Al-Dhawahi Real Estate Development Fund after raising SAR78.1mn ($20.8mn) in equity, along with structuring a SAR68mn ($18.1mn) facility loan from a local bank.
The Al-Dhawahi Fund was established by Swicorp in partnership with Nesaj Development Company, a subsidiary of the Al-Fozan Group.
Nesaj will develop and sell 133 mid-income villas in Dammam city, Eastern Province, Saudi Arabia. So far, the skeleton construction phase has been completed with some villas beginning the finishing work.
The fund is expected to return money to investors by the end of 2015/beginning of 2016.
There was a strong interest from investors during the offering period resulting in the fund being oversubscribed and the equity was raised from institutional and individual investors.
Kais Mbarek, head of asset management, said: "Swicorp is honored to take the role of fund manager for Al-Dhawahi and to contribute to the development of the real estate sector in the eastern region. We are confident that with our experience and expertise, we will be able to generate attractive returns for fund investors in partnership with Nesaj Development Company and hope that this fund will be the start of a long term mutually beneficial relationship between the two parties."