(MENAFN - Arab News) Abu Dhabi's Gulf Capital will enter Saudi Arabia's real estate market with an SR 1 billion investment plan to tap growing demand for residential property in the Kingdom, the private equity firm said.
Gulf Capital will enter the Saudi property market through its Gulf Related unit, which is a joint venture with Related Companies, the largest privately-owned property developer in the US.
The initial development will be a multi-million riyal residential project in Riyadh, a statement from Gulf Capital received here said. The first phase slated to be completed by early 2015.
"We have been studying the Saudi Arabian real estate market extensively and have concluded there is significant demand for residential compounds in Riyadh," Karim El-Solh, Gulf Capital chief executive said in the statement.
There is a shortage of more than 100,000 residential units for expatriates in Riyadh, while 1.3 million new housing units are needed to meet demand in the Kingdom over the next seven years, he added.
Gulf Related is also developing a retail project in Abu Dhabi in a joint venture with Mubadala Real Estate & Hospitality, a unit of Abu Dhabi government investment vehicle Mubadala,
Gulf Capital has acquired two strategically-located plots of land, totaling an area of almost 300,000 square meters where the project will be built.
The plots are located in the North Western part of Riyadh on the Salboukh Highway. The new development will be located about 10 minutes from King Abdullah Financial District and 20 minutes from King Khalid International Airport.
The first phase of the project compises a residential compound, which will be built on the first 157,000 square meters plot.
The statement added that 450 residential units will be built in the first phase in a lush landscaped environment that will enjoy first-class facilities.
Emile Habib, managing director of Gulf Related, said: "The size of this project and the extent of our financial commitments reflect our strong belief in the residential sector in Saudi Arabia, which is poised to grow significantly in the coming years. This high-end residential compound, in the up and coming Salboukh area in North West Riyadh, is strategically located and will cater to the growing need for expatriate housing in the Capital. It reflects the sort of exclusive, high-end development ventures pursued in the years ahead by Gulf Related in the Middle East."
Modern infrastructure, abundant landscaping and greenery, a world-class road network and top communal facilities will position the new compound as the preferred residential development in Riyadh.
Gulf Related has appointed international master planners, architects, designers and landscapers to design and develop the unique residential community.
Kenneth A. Himmel, president of Related Urban and Co-Managing Partner of Gulf Related, added: "We are very excited to be part of this exclusive real estate development venture in Riyadh. Designed according to world-class standards, the project will be fashioned to offer the best amenities and lifestyle experiences for expatriates in the Capital."
Himmel said the exquisite design, lush landscaping, common facilities and ample road-ways will cover 40 percent of the total area of the compound, providing a unique lifestyle for residents.
The residential compound will focus on being a comfortable home to an expatriate audience living an urban lifestyle, enhanced by everything the modern city dweller demands in a contemporary cityscape, he added.
Himmel added: "We have relied extensively on Related's 40 years history in creating unique urban experiences that combine the energy and vitality of an urban destination with local lifestyle and culture and have called on the best global design talent to help us launch what we believe will become the premier residential compound in Riyadh."
Emile Habib, managing director of Gulf Related, said: "The size of this project and the extent of our financial commitments reflect our strong belief in the residential sector in Saudi Arabia, which is poised to grow significantly in the coming years. This high-end residential compound, in the up and coming Salboukh area in North West Riyadh, is strategically located and will cater to the growing need for expatriate housing in the Capital. It reflects the sort of exclusive, high-end development ventures pursued in the years ahead by Gulf Related in the Middle East."
