KEC inks deal with Sidra Capital, Raseel Properties to set up REIT

Logo of Knowledge Economic City (KEC)

Knowledge Economic City (KEC) signed a framework agreement with Sidra Capital and Raseel Properties to establish a closed-end private real estate investment trust (REIT).

According to a statement on Tadawul, the fund will be managed by Sidra Capital following the completion of its establishment arrangement and obtaining regulatory approvals.

The fund aims to develop the Al Duha mixed use project on a 33,270-square-meter plot of land directly facing King Abdulaziz Road, near the bus rapid transit (BRT) station and KEC’s headquarters, as part of the city’s master plan.

The project is a mixed-use development that combines hospitality, residential, retail, and office sectors. It is expected to include a 150-room hotel, 576 residential apartments, 20,000 square meters of office space, and various retail outlets.

Under the agreement, Sidra Capital will serve as the fund manager, while Raseel Properties will act as the project developer. KEC will be the primary investor by contributing the project land as an in-kind share in the fund’s capital, which is projected to have an investment value of approximately SAR 1.04 billion.

The fund is scheduled to launch in Q1 2025, with development work expected to be completed by Q1 2029, the statement added.

KEC noted that the agreement currently has no financial impact, which will be determined upon the fund's launch and the transfer of land ownership. Additionally, there are no related parties involved in the framework agreement.