Dallah Healthcare Company has signed a memorandum of understanding (MoU) with AlJazira Capital, Dallah Real Estate Company and Tatweer Company to set up a private real estate fund worth more than 1.2 billion Saudi riyals ($320 million).

The fund will acquire and develop land in Riyadh, the company said in a statement to the Saudi stock exchange on Tuesday.

Dallah Healthcare and Dallah Real Estate will contribute their owned lands as investors in kind. Tatweer will participate as a cash investor. In addition, it will execute the construction development programme by developing a mixed-use project, which includes commercial, office, hotel, and healthcare spaces.

AlJazira Capital will manage the regulatory procedures for setting up the fund and function as the fund manager.

(Editing by Seban Scaria seban.scaria@lseg.com)