Blominvest arranges a loan of SR290m to build 400 housing units in Riyadh
- Saudi Arabia: Sunday, February 12 - 2012 at 12:37
- PRESS RELEASE
Blominvest Saudi Arabia announced the closing of the private placement offering of "Blominvest - Maskan Arabia for Real Estate Development Fund" with a total of SR283m that is focused on building 400 housing units in north and north-west Riyadh in collaboration with Maskan Arabia, the project developer.
The project financing contract was signed yesterday by the National Commercial Bank (Financing Party), IBAR Development and Maskan Arabia (Project Developer). A three-year development contract was also signed by Blominvest Saudi Arabia (Fund Manager) and Maskan Arabia Investment and Development, the developer of the new housing project in Riyadh.
Eng. Yasir Abusulayman, Vice President and Head of Corporate Structured Unit, signed the agreement on behalf of Alahli Bank, Eng. Hisham Alsaghyir, General Director, on behalf of IBAR Development, Khaled Salhab, Chief Executive Officer, on behalf of Blominvest and Eng. Hosam Al-Rashoudi, CEO, on behalf of Arabia Maskan. The signing ceremony took place in the presence of Mr. Abdulaziz Alsaghyir, Chairman of the Board of Directors, Abdulaziz Alsaghyir Holding, and Mr. Saad Azhari, General Manager and Chairman of the Board of Directors of BLOM Bank and Vice-Chairman of Blominvest Saudi Arabia.
Commenting on this occasion, Eng. Yasir Abusulayman said that the funding comes in response to the increased demand on housing units to meet public needs, and driven by the bank's vision to support the Real Estate Sector, which is a crucial part of the development and is second of importance in the kingdom after the oil sector. He indicated also that Alahli Bank is a pioneer in the field of finance and has signed many related agreements.
Mr. Saad Azhari, Vice-Chairman of Blominvest Saudi Arabia, said that closing the real estate fund, which is allocated for developing the real estate residential project, in a record time, reflects trust in the real estate sector of the kingdom, which provides investors with high-return investment opportunities and builds housing units that meet the needs of the local real estate market.
The reputation of BLOM Saudi Arabia gave an added value to the fund and the project. This reputation has come from the company's successive achievements in the Saudi market shortly after its establishment that has driven us to explore more investment opportunities and share returns of various projects with investors, added Mr. Azhari.
Mr. Abdulaziz Alsaghyir, Investor in Blominvest Saudi Arabia and Chairman of IBAR Development, "Real estate market provides good environment for investment with the presence of manufacturers, marketers and consumers, an annual demand for around 200,000 housing units and an expectation of 8-10% growth in real estate investment in the coming period. In addition, the government of the Custodian of the Two Holy Mosques has directives to support real estate housing units to meet the demand, therefore, BLOM real estate fund is expected to provide the final consumer with good housing choices".
He added that BLOM Saudi Arabia has used various financial tools that will help in achieving the fund's goals. On one hand, it will achieve good return for investors participating in the fund and, on the other hand, it will build real estate units ideal for consumers. BLOM has demonstrated its ability by creating this balance.
Meanwhile, Eng. Hosam Al-Rashoudi, CEO of Maskan Arabia said, "We are happy that Blominvest Saudi Arabia and the National Commercial Bank trust the quality of Maskan Arabia projects and the potential power in the real estate sector. This enables Maskan Arabia to continue providing distinguished services to its clients, especially that the support of banks and financing companies to such project is in the interest of citizens, whom many of them are facing difficulty in finding proper housing. The strategy of this project depends on building maximum of two or three housing blocks that will represent a quantum leap in terms of durability, elegance and beauty. The project's design will reflect the Islamic architecture style, mainly Andalusian, Ottoman and Moroccan; it will be one of the most unique aesthetic and cultural sites in the capital."
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