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Saudi Arabia’s King Abdullah Financial District (KAFD) is planning to raise $700 million through a real estate investment trust (REIT) to fund further development, according to Bloomberg.
The financial centre real estate project in Riyadh will put some of its income-generating buildings into a trust to offer a stake to investors through a listing on Tadawul, the Saudi stock exchange.
The final amount raised could be closer to $750 million, Bloomberg said, citing people familiar with the matter, with Citigroup Inc, HSBC Holdings Plc and Al Rajhi Capital hired as advisors on the deal.
Saudi sovereign wealth fund PIF took over the development in 2016 following its launch in 2007.
The CEO of the company developing and managing KAFD, Guatam Sashittal, stepped down last month to be replaced by PIF investment manager Mohammed Alsudairy.
(Reporting by Imogen Lillywhite; editing by Brinda Darasha)
