Thakher signs SAR 1B agreement to launch real estate fund: CEO

Abdulaziz Al-Aboudi, CEO of Thakher Development Co.

Abdulaziz Al-Aboudi, CEO of Thakher Development Co., said that the company signed an agreement with Mulkia Investment Co. to launch a real estate fund worth SAR 1 billion.

The goal of the fund is to develop two land plots for the construction of hotel apartment towers, with a global operator managing the project at a 4-star level, Al-Aboudi explained in an interview with Argaam at Cityscape Global in Riyadh.

He went on to say that the project will be built on an area of 5,000 square meters (sqm), with an expected total built-up area of 80,000 sqm. Upon completion, the project will feature 1,100 hotel apartments managed by an international operator.

The CEO expected the project to be completed in about five years.

He added that the project will be financed through a partnership with Mulkia Investment, with Thakher holding a 30% share of the fund. The remaining funding will be secured through banks, loans, or investors, in addition to sales based on project phases.

Regarding updates on Thakher Makkah, Al-Aboudi pointed out that the licenses for off-plan sales were approved over the past two years, during which a number of towers, such as the hotel apartments, were sold. He also highlighted that 80% of the sales for Novotel Thakher were completed.

The CEO further revealed that the average price in Thakher Makkah properties ranges from SAR 23,000/sqm for fully furnished apartments under the management of a global operator, with prices varying between SAR 23,000 and SAR 24,000 depending on the location and floor.

He noted that the real estate development sector, particularly in Makkah and Madinah, is poised for significant growth, driven by the ongoing support and incentives from government authorities. Al-Aboudi expects new decisions related to Makkah and Madinah that will serve as further catalysts for investment.

He also clarified that the company does not plan to list on the Saudi Stock Exchange at this time.