Riyadh Development Co, Riyadh Holding Co set up $405mln venture

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Riyadh Development Company has signed of an agreement with Riyadh Holding Company to establish an entity that owns the assets and plays the role of the main developer and operator of the markets in the Qasr Al-Hukm area.

The total value of the assets is SAR1.521 billion ($405.37 million), according to a filing in Saudi Exchange.

This partnership seeks benefit from the experience of the two companies in establishing, managing and developing commercial and service real estate projects. These assets are located on the lands owned by the two companies in the centre of Riyadh, which include Al-Taamir Markets, Al-Muaiqiliyah Center and Al-Dira Markets.

The in-kind contribution of Riyadh Development Company to Al-Taamir Wholesale Commercial Center represents 46.34% of the partnership, while the contribution of Riyadh Holding Company to Al-Muaiqiliyah Commercial Center and Al-Dira Market is estimated at 53.66% of the partnership.

The agreement comes in accordance with Riyadh Development Company's strategy and its eagerness to establish supportive partnerships that enable it to achieve financial sustainability and raise efficiency in operational activities and real estate management, the filing said.

The agreement also aims to create investment opportunities that contribute to improving the return on the asset portfolio and entering qualitative partnerships that contribute to maximising the total return for shareholders and allows for focusing on real estate development and property management operations, it added.