Cayan-MEFIC deal to fund construction of new Riyadh office tower

Saudi-based developer Cayan Group said in a statement on Monday that it has signed an agreement with Saudi financial services firm MEFIC Capital to launch an investment fund that will finance the construction of a new luxury office tower in Riyadh.

Under the terms, Cayan will serve as the main developer on the project, working in coordination with Consolidated Consulting Group. Cayan will provide sales and marketing services through its subsidiaries.

The new office tower will be alongside the capital’s King Fahd road, and aims to cater to a growing demand for high-end office space in the kingdom.

“This project proves to be both timely and strategic as there is a growing demand for office space in Saudi Arabia, particularly in Riyadh,” said Ibrahim Al Hudaithi, executive board member & managing director of MEFIC Capital. “We remain highly positive that this new project will be well received and play a major role in the country’s continuing move towards economic growth and development.”

Construction on the building is set to begin in the third quarter of this year, while it’s expected to be completed by the third quarter of 2017.

Both Cayan Group and MEFIC Capital are said to move their headquarters to the tower upon its completion.

The statement did not provide any details on the project cost or the fund’s value.