Gulf Coast Real Estate Development to break ground on Al Khafji coastal development this year

Gulf Coast Real Estate Development will start construction on the first phase of its Al Khafji coastal development this year, CEO Amr Banaja tells Asharq Business, noting that the project will be financed through different partnerships whose details will be announced later.

REMEMBER- The company was launched earlier this month to develop the 20 sq km integrated tourism and residential destination in Al Khafji, stretching 10 km along the Arabian Gulf waterfront. The project will feature eight residential neighborhoods, more than 16k housing units and around 1.4k hotel keys, alongside commercial, tourism, educational, and marina facilities. It will be developed in three phases, with the first phase — covering the neighborhoods and groundwork for the wider destination — targeted for completion in 2030.

Alramz secures SAR 500 mn financing

Alramz Real Estate secured SAR 500 mn in shariah-compliant credit facilities from Al Rajhi Bank, the company said in a Tadawul filing. The package is split into SAR 450 mn with a five-year tenor and SAR 50 mn with a three-month tenor. The five-year facility is secured by real estate mortgages covering 150% of the financing amount, an irrevocable assignment of project sale proceeds, dedicated accounts for each financed project, a SAR 531.2 mn on-demand promissory note, and Shariah-compliant Takaful ins. over the mortgaged assets.

IN CONTEXT- The financing comes as Alramz expands a development pipeline that includes a SAR 3.6 bn Riyadh project with around 2,505 apartments and a SAR 650 mn Jeddah fund targeting 900 residential units.

Signed and sealed: Al Majdiah’s new Madinah project

Al Majdiah Real Estate Company signed a SAR 185 mn agreement with Jadwa Al Maqar Real Estate Fund for the Mishraf Al Majdiah project in Madinah, according to a Tadawul filing. The agreement covers the development of 296 residential units in Al Hadra District, comprising 66 villas and 230 apartments, along with the public realm of the project’s central area.

Mefic Reit cuts Makkah asset value

Middle East Financial Investment Company (Mefic Capital) has agreed to cut the price of Mefic Reit Fund’s acquisition of a Makkah property to SAR 302 mn from SAR 355 mn, excluding real estate transaction tax, according to a Tadawul filing. The fund will acquire the 36k sqm plot through in-kind units.

The bigger picture: The Makkah plot is one of two purchases behind a board-approved SAR 770.9 mn increase in the fund’s total asset value. The other is an income-generating commercial complex in Jeddah, priced at SAR 460 mn excluding transaction tax.