Saudi’s First Avenue Real Estate Development plans to expand into the hospitality sector, the company CEO and Managing Director Nader bin Hassan Al-Omari told CNBC Arabia.

He said the company's project portfolio currently stands at approximately SAR 2 billion ($533 million), spanning residential, commercial and office projects.

The announcement follows First Avenue’s listing on the Saudi parallel market (Nomu), with the company's shares commencing trading on Wednesday. The offering included 16.4 million ordinary shares, representing 8.01 percent of the company’s capital, priced at SAR 6 per share, with a coverage ratio of 740.1 percent. A total of 819 qualified investors participated in the offering.

Al-Omari stated that the proceeds from the offering will be directed toward financing key developments, including SAR95 million ($25 million) ‘Al Muhammadiyah Avenue’ mixed-use development in and the SAR190 million ($51 million) Diriyah Avenue luxury residential project, both located in Riyadh and scheduled for delivery in 2025.

He also highlighted the company's strategy of partnerships with banks and closed real estate funds to support its continuous growth.

Al-Omari also emphasised that the company’s borrowings are currently at their lowest, providing ample capacity to secure additional financing for further expansion in the coming period.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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