Dallah Healthcare inks MoU to establish SAR 1.2B real estate fund

Logo of Dallah Healthcare Co.

Dallah Healthcare Co. signed, on July 1, a non-binding memorandum of understanding (MoU) with AlJazira Capital, Dallah Real Estate Co., and Tatweer Co. to establish a real estate fund with an estimated value exceeding SAR 1.2 billion.

In a statement to Tadawul, the company said the MoU has a duration of six months from the date of signing.

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The primary objective of establishing the fund is to raise capital for investors in the fund through the acquisition of land and the execution of a construction development program. This program encompasses a mixed-use project featuring commercial, office, hotel spaces, and a healthcare sector, all based on an approved preliminary study.

The fund will be responsible for owning and developing the land. Dallah Healthcare and Dallah Real Estate will contribute their owned lands as in-kind investors, while Tatweer will participate as a cash investor.

Tatweer will also oversee the execution of the construction development program, aligning with the mixed-use project's requirements as outlined in the preliminary study. Concurrently, AlJazira Capital will manage the regulatory procedures for establishing the fund and subsequently serve as its fund manager.

The statement indicated that the expected financial impact cannot be determined at this time.

The related parties involved in the MoU include several individuals with significant roles across Dallah Healthcare, Dallah Real Estate, and Dallah Albaraka Holding Co. Mohiuddin Saleh Kamel, serving as a board member and partner at Dallah Real Estate, holds additional positions as a board member at Dallah Albaraka Holding Co. He also serves as the Vice Chairman of Dallah Healthcare. Abdullah bin Saleh Kamel, also a board member and partner at Dallah Real Estate, and Chairman of Dallah Albaraka Holding Co., is also one of the involved parties.

Additionally, Hadeel bint Saleh Kamel contributes as a board member and partner at Dallah Real Estate, while holding a board position at Dallah Albaraka Holding Co. Saleh bin Abdullah Kamel, in his capacity as a board member of Dallah Real Estate and a board member at Dallah Albaraka Holding Co., is another figure involved in the MoU. Abdulaziz bin Mohammed Abdo Yamani, serving as a senior executive and board member at Dallah Real Estate and holding similar roles at Dallah Albaraka Holding Co., is one of the parties involved.

According to data available on Argaam, Dallah Healthcare signed, in October 2022, a non-binding MoU with Dallah Real Estate to invest in lands owned by the two parties and located in Al Nakheel, Riyadh.

The MoU was intended to boost land values and achieve higher investment revenue for both parties, where a legal entity was to be established to own the land.

In April 2023, the MoU was extended for a period of six months until Oct. 12, 2023 In October 2023, Dallah Healthcare received integrated consulting studies for its planned investment with Dallah Real Estate. The company indicated that both parties are evaluating these studies, which are aimed at supporting expansions in Dallah hospitals.