Knowledge City Signs Term Sheet with Al Bilad Financial for Appointment as Manager of a Private Real Estate Investment Fund

Logo of Knowledge City Economic Company

Knowledge City Economic Company announced the signing of a non-binding term sheet with Al Bilad Financial Company, to appoint it as manager of a closed private real estate investment fund that will establish, offer, and manage the fund. The company said in a statement on Tadawul that this is to finance and develop the Al Multaqa Hotels Group project (first package) within the Madinah Multaqa project, after fulfilling regulatory requirements, obtaining necessary approvals, and completing the conditions stipulated in the term sheet. It added that the agreement remains effective from the date of signing until the occurrence of any of the following, whichever comes first: the establishment and commencement of the fund's operations and signing of final agreements; failure to obtain no objection from the Capital Market Authority to establish the fund; inability to secure the necessary financing for the project; non-completion or non-acceptance of due diligence results and supporting studies; lack of approval from the relevant committees of Al Bilad Investment to establish the fund; expiry of the exclusivity period of six months from the signing date for completing steps related to the fund's establishment without extension by written agreement between both parties; or inability to obtain the construction license for the project. It explained that the first package of the Hospitality Multaqa project includes the development of a JW Marriott hotel with a capacity of approximately 288 hotel keys, a Marriott hotel with a capacity of approximately 327 hotel keys, and about 295 branded residences, with a total estimated development value of about SAR 1.5 billion including land value.

It stated that the project is part of the Madinah Multaqa project on King Abdulaziz Road in Madinah, and is connected to the Al Multaqa Mall via a dedicated pedestrian bridge, which also connects it to the hotel tower (Hilton Hotel) and the residential tower housing Hilton branded residences. Thus, the project joins the integrated development system serving the tourism, shopping, entertainment, and museum sectors, enhancing the goals of Saudi Vision 2030, most notably serving the tourism sector, the Quality of Life Program, and the Guests of the Merciful Program in particular. It added that the proposed fund aims to provide an appropriate investment mechanism for financing and developing the project through equity and bank financing, according to the final structure of the fund and relevant regulations and instructions. Through this step, the company aims to expand the participation of financial companies to support its strategy in developing the hospitality sector and other important sectors to ensure quality and sustainability for its various hospitality projects. The company expects that the establishment of the fund, after completing all regulatory and contractual requirements, will help provide the necessary financing for the project and support the implementation of one of the main project components within the master plan, namely the Madinah Multaqa project, in line with the company's development strategy to develop pioneering projects with substantial and sustainable returns.

{{displayname}}

{{profession}}

{{followercount}}

{{aboutme}}