KEC inks preliminary deal with Riyad Capital to manage real estate fund

Knowledge Economic City (KEC) inked a preliminary agreement with Riyad Capital to manage the planned real estate investment trust (REIT), the company said in a statement to Tadawul.

The planned REIT will develop the Madinah Gate project, close to Haramain High-Speed rail station in Madinah. 

The project is aimed at increasing the number of pilgrims, in line with Saudi Vision 2030. The first phase comprises the development of 300 hotel units, hypermarkets, shops, restaurants and an entertainment park with a leasing space of 14,000 sqm.

The initial agreement includes the main contract terms, including financial liabilities, the fund term, scope of work and other work related appointments.

There is no financial impact pertaining to the deal at present, and there are no related parties involved in the deal, KEC statement added.

In March, KEC’s board of directors approved to set up a real estate fund in partnership with strategic investors to develop the project, in addition to a special purpose vehicle (SPV) between KEC and other strategic investors to build the project, Argaam previously reported.