25 May 2013
Saudi Fransi Capital has launched its new fund, the Saudi Fransi Real Estate Fund. The new fund seeks to achieve capital growth, by developing lands and real estate projects, along with the possibility of generating income stream by acquiring existing real estate in Saudi Arabia.
It's a closed -- ended Shariah-compliant fund, with duration of four years from the day of closing, but may be extended for two successive periods of one year. The subscription period started on May 18 and will end on July 3.
SFC signed a memorandum of understanding with a leading and renowned real estate developer, to be the principal real estate developer of the fund; the fund may assign other developers if needed.
Yasir bin Othman Al-Rumayyan, CEO of SFC, stated: "Following the repeated achievements of SFC funds, embodied in the many awards won for the outstanding performance, it is our pleasure to launch this new investment product, the Saudi Fransi Real Estate Fund. Unlike other funds, this fund provides the opportunity for capital growth and generating income; since real estate sector usually does not generate cash during the development phase, our fund can. This fund will cater to the requirements of clients, and provide them with the opportunity to invest in the real estate sector in the Kingdom of Saudi Arabia."
Regarding the impact of latest developments in the real estate market, Al-Rumayyan added: "We expect that it will take a few years before the impact of the latest developments can be materialized, as administrative and legal developments require some time to come about; therefore, we believe that there are present opportunities for investing in the real estate sector."
Saudi Fransi Capital has launched its new fund, the Saudi Fransi Real Estate Fund. The new fund seeks to achieve capital growth, by developing lands and real estate projects, along with the possibility of generating income stream by acquiring existing real estate in Saudi Arabia.
It's a closed -- ended Shariah-compliant fund, with duration of four years from the day of closing, but may be extended for two successive periods of one year. The subscription period started on May 18 and will end on July 3.
SFC signed a memorandum of understanding with a leading and renowned real estate developer, to be the principal real estate developer of the fund; the fund may assign other developers if needed.
Yasir bin Othman Al-Rumayyan, CEO of SFC, stated: "Following the repeated achievements of SFC funds, embodied in the many awards won for the outstanding performance, it is our pleasure to launch this new investment product, the Saudi Fransi Real Estate Fund. Unlike other funds, this fund provides the opportunity for capital growth and generating income; since real estate sector usually does not generate cash during the development phase, our fund can. This fund will cater to the requirements of clients, and provide them with the opportunity to invest in the real estate sector in the Kingdom of Saudi Arabia."
Regarding the impact of latest developments in the real estate market, Al-Rumayyan added: "We expect that it will take a few years before the impact of the latest developments can be materialized, as administrative and legal developments require some time to come about; therefore, we believe that there are present opportunities for investing in the real estate sector."
© Arab News 2013