Red Sea Housing agrees JV with Brazilian developer
Pair sign joint venture to target affordable housing sector in the Kingdom of Saudi Arabia and across the GCC
Red Sea Housing Services Company, the Saudi Arabian manufacturer of prefabricated worker camps and affordable housing projects, has signed a joint with Brazilian developer Direcional Engenharia which will see the pair target projects across the GCC.
Red Sea Housing has signed two deals - one of which covers the provision of technical services, while the other is a joint venture, with Direcional Engenharia. It is a Brazilian developer which is a specialist in affordable housing.
Red Sea Housing said the agreement complements its own plans for providing more affordable housing methods, particularly in its home market of Saudi Arabia. It quoted a recent report which suggests the Kingdom needs nearly 1.25m new homes by 2018 to cope with demand from a young - and rapidly-growing - population.
Joseph Vecchiolla, CEO and managing director of Red Sea Housing, said: “We look forward to working closely with Direcional Engenharia to deliver affordable residential homes of unmatched value, quality and scale. We are very optimistic about this alliance which combines the Red Sea’s vast knowledge, its local and global experience with Direcional’s expertise of developing high-quality affordable communities that will offer Saudi families access to affordable homes.”'
Direcional has contracts to deliver more than 90,000 homes under a national housing programme. Last year, it achieved a turnover of $575m.
Ricardo Ribeiro Valadares Gontijo, managing director of Direcional Engenharia, added: “The Kingdom of Saudi Arabia has emerged as a preferred destination for real estate investment within the GCC due to the large demand, particularly from the residential segment.
"We believe the need for affordable homes will grow at an unprecidented rate between 2015 through 2020 and beyond. In addition, we believe housing is one of GCC’s most valuable markets with an estimated $495bn worth of projects under various stages of construction. Direcional Engenharia is fully committed to working closely with Red Sea Housing, which has long been known for its swift delivery of affordable housing solutions throughout Saudi Arabia and beyond.”