Alistithmar Capital, Osus launch up to SAR 1 bln REIT, targets office market

The signing ceremony

Alistithmar Capital, the investment arm of the Saudi Investment Bank (SAIB), inked a cooperation agreement with Osus Real Estate Co. to launch a real estate investment trust (REIT) that will primarily focus on developing office commercial space in Riyadh. 

The potential REIT will mainly support the invested capital growth through acquiring developed land plots in north Riyadh to build high-quality office commercial buildings to be sold as ready commercial units at robust returns.   

“We are pursuing our search for high-yielding investment opportunities and this REIT will represent the first strategic cooperation with Osus,” said Khaled Al Rayes, CEO of Alistithmar Capital, adding that the REIT will seek to raise up to SAR 1 billion in capital.  

Osus CEO Moh’d Almujaidel indicated that the agreement falls within the company’s strategy to establish and launch a number of REITs to narrow the gap between supply and demandacross all the segments of the real estate sector market.