Fund offers investors opportunity for capital growth by Investing in developing residential units for middle and upper income home buyers in Jeddah
Jeddah, 04 February 2014: NCB Capital, the GCC's leading provider of wealth management services and Saudi Arabia's largest asset manager, has joined hands with Jeddah-based SEDCO Development Company, the leading Saudi real estate developer, to launch the AlAhli SEDCO Residential Development Fund, a public close-end Shariah-compliant investment opportunity.
The Fund provides investors with capital growth by purchasing land plots in Jeddah for development, construction and sale of residential apartments targeting the middle income segment of the population. Minimum subscription is SR50,000 and the Fund aims to have an internal rate of return of 10% per year.
Commenting, Tariq Linjawi, Acting CEO and Head of Wealth Management at NCB Capital, said: "Combining NCB Capital's success in launching and managing real estate funds with SEDCO Development's expertise as one of the most successful real estate developers in the region, the new Fund has been created to address the shortage of reasonably affordable residential accommodation for middle and upper income home buyers.
With Jeddah's continuing rise in population and the declining size of family households, the overall supply of housing units in Jeddah is becoming increasingly inadequate compared to the steeply rising demand. Jeddah's residential market-wide gap is estimated to be 21,000 units per year.
Residential projects in the pipeline are not keeping up and through our partnership with SEDCO Development we have the opportunity to realize the investment potential of the market shortage".
SEDCO Development has been appointed as the Developer of the AlAhli SEDCO Residential Development Fund, responsible for managing and conducting the development.
Khalid Jamjoom, CEO of SEDCO Development commented "The merging of two major players in the local market provides investors a unique opportunity to participate in a quality product that meets the strong demand for this type of residential property in Jeddah".
Anees Moumina, CEO of SEDCO Holding Group also added "We are excited about this collaboration between NCB Capital and SEDCO Development and believe that AlAhli SEDCO Residential Development Fund will have a role in supporting the Real Estate Sector in Saudi Arabia".
Real estate financing is expected to increase by 60% during 2014-2019E to SR 210 billion and the introduction of the Mortgage Law is expected to further drive demand since, with banks set to offer mortgage finance schemes to home buyers, many young Saudis should be encouraged to shift from renting to home ownership.
In launching the AlAhli SEDCO Residential Development Fund , NCB Capital is making a major response to the call from the Government of the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al-Saud, for the private sector to play a greater role in facilitating homeownership for Saudi citizens.
Linjawi concluded: "At NCB Capital we are determined to enhance our relationships with clients and provide them with innovative products and suitable investment solutions backed by our extensive knowledge and experience to manage and grow their wealth. We are focused on providing clients with the best investment portfolios designed to cater to their individual needs and investment objectives."
About NCB Capital:
NCB Capital is the leading provider of wealth management services in the GCC and Saudi Arabia's largest asset manager. It is:
The largest and most wide-reaching wealth manager in Saudi Arabia in terms of:
- assets under management (SAR44.8 billion at end of December 2012);
- brokerage accounts (top three by volume);
- number of qualified and internationally-accredited wealth managers;
- number of clients (over one million high net worth).
A global leader in Islamic mutual funds, managing one of the world's largest Shariah-compliant money market funds, currently at SAR 15.3 billion. And the market leader in Islamic mutual funds in Saudi Arabia, with SAR27.9 billion under management in 26 funds (Jan 2013).
Growing international reach through a new UCITS platform.
Number one in Euromoney's annual Middle East regional poll of equity research in three sectors - Cement, Consumer Goods/Retail and Food & Agriculture.
An award winner for its mutual funds.
One of the GCC's largest provider of discretionary portfolio management services.
The largest provider of corporate savings plans.
An innovator in the provision of financial education to young people in the Kingdom.
For further information, please visit: www.ncbc.com
For more information please contact:
Ahmed Al Malki
TRACCS, Jeddah KSA
Tel: +966-2-662-5757
Fax: +966-2-639-9540
EmailAhmed.almalki@traccs.net
© Press Release 2014
