(MENAFN - Gulf Times) The First Investor (TFI), the investment banking division of Barwa Bank Group, is acquiring a Saudi Riyal 300mn residential compound in Riyadh, managed by Manazel Compounds Real Estate, and has kept options open on acquiring more income generating residential compounds in Saudi Arabia.
"With the current market dynamics, expatriate residential compounds are becoming an increasingly attractive sector (in Saudi Arabia)," TFI CEO Yousef al-Obaidan said, adding it is also in the process of further acquisitions of income-generating residential compounds and assets in Saudi Arabia.
The residential compounds is one of the most sought after asset classes due to the huge supply demand gap in this sector, with demand exceeding supply by more than two times in Riyadh, Jeddah, and Dammam, he pointed out.
On the acquisition of Manazel Compounds, he said there is a good momentum for Manazel to benefit from this lucrative investment opportunity.
Al-Obaidan said TFI, Barwa Bank, Tanween, and Warba Bank in Kuwait have invested in the acquisition of the compound. Alinma Bank has supported the move by providing financing facility for the acquisition, he added.
The property is a newly-built compound, which is strategically located in Riyadh within the vicinity of two major landmarks, the upcoming metro station that directly leads to Amir Khalid Airport and the University of Amira Noora.
Manazel Compounds has been able to lease the compound to Saudi Arabia Airlines, which is currently accommodating more than 1,000 cabin crew staff in the compound.
The compound also hosts a number of recreational facilities such as a fully-equipped bowling alley, theatre, indoor and outdoor swimming pools, tennis and squash courts, sauna, gym, retail, nursery, playgrounds, and an automated teller machine.