Knowledge Economic City Company signed a non-binding term sheet on July 12 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. This aims to finance and develop the Al Multaqa Hotels project (first package) within the Madinah Meetings project, after fulfilling regulatory requirements, obtaining necessary approvals, and completing the conditions stated in the term sheet.

The company clarified in a statement on Saudi Tadawul today, Sunday, that the term sheet aims to establish the initial framework and basic conditions for establishing and launching a private real estate investment fund to provide the appropriate investment mechanism to finance and develop the first package of the Al Multaqa Hospitality project in Knowledge Economic City, and to define the foundations that regulate the completion of the necessary procedures to establish and launch the fund.

The agreement remains effective from its signing date until any of the following conditions occur: first, the establishment of the fund and commencement of its operations and signing of final agreements; or failure to obtain a no-objection from the Capital Market Authority to establish the fund; or failure to obtain the necessary financing for the project; or incompleteness or non-acceptance of the results of the due diligence and supporting studies; or non-approval of the specialized committees at Al Bilad Investment Company to establish the fund; or expiration of the exclusivity period of 6 months from the signing date related to completing the steps associated with establishing the fund without extension by written agreement between the parties; or failure to obtain the construction license for the project.

Knowledge Economic City expects that the establishment of the fund, after completing all regulatory and contractual requirements, will contribute to providing the necessary financing for the project's development and support the implementation of one of the key project components within the master plan, namely the Madinah Meetings project, in line with the company's development strategy to develop pioneering projects with substantial and sustainable returns.

Project Details and Estimated Cost

The first package project of Al Multaqa Hospitality includes the development of a JW Marriott hotel with a capacity of approximately 288 hotel keys, a Marriott hotel with a capacity of about 327 hotel keys, in addition to approximately 295 branded residences, with a total estimated development value of about 1.5 billion riyals, including the land value.

The project is located within the Madinah Meetings project on King Abdulaziz Road in Madinah. The project is connected to Al Multaqa Mall via a dedicated pedestrian bridge, which also connects it to the hotel tower (Hilton Hotel) and the residential tower that includes Hilton branded residences. Thus, the project joins the integrated development system that serves 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 God program in particular.

The company indicated that the proposed fund aims to provide the appropriate investment mechanism to finance and develop the project through equity and bank financing, according to the final structure of the fund and relevant regulations and instructions.

Through this step, Knowledge Economic City Company aims to expand the participation of financial companies to contribute to supporting the company's strategy in developing the hospitality sector and other important sectors to ensure the quality and sustainability of its various projects in the hospitality field.

Appointment of New CEO for the Company

On another note, the Board of Directors of Knowledge Economic City decided on July 9 to appoint Dr. Muath bin Ahmed bin Hamad Al Yahya as CEO of the company, effective July 19.

The company said in a separate statement on Saudi Tadawul today, Sunday, that Dr. Muath Al Yahya has over 20 years of professional experience in real estate development, investment management, real estate portfolios, and leading major projects, having held several executive and leadership positions in both the public and private sectors.

Al Yahya recently served as CEO of Al Rajhi Union Company, leading the development and management of a diverse portfolio of residential, hospitality, infrastructure, and mixed-use projects, in addition to several strategic acquisitions. He also completed several agreements with the public and private sectors. Previously, he held leadership positions at the Ministry of Labor and Social Development, Asool Almutakamela Real Estate Company, and the General Organization for Social Insurance, and contributed to the management and implementation of several major real estate projects in the Kingdom.

Muath Al Yahya holds a PhD in Project Management from Queensland University of Technology in Australia, a Master's degree in Engineering Management from Griffith University, a Diploma in Public Administration from the Australian Institute of Management, and a Bachelor's degree in Building Engineering from Imam Abdulrahman bin Faisal University.

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