Alinma-Al Akaria Fund to develop three hospitality projects in Riyadh: CEO

Alinma-Al Akaria Fund for Real Estate Development is set to develop a 10,000 square meter mixed-use project to serve the business sector, Al Akaria’s CEO Mamdouh Saud Al-Sharhan told CNBC Arabia.

The project will comprise a Courtyard Marriott Hotel, Residence Inn hotel apartments and several premium offices, he said.

The fund will also develop a mixed-use hospitality project near King Abdullah Financial District (KAFD) in Riyadh, which will offer four and five-star hotels, hotel apartments, as well as retail units and offices, he said.

Starwood Hotels and Resorts, a subsidiary of Marriott International, will operate the project.

The third project, Telal Riyadh, will be a residential development, the CEO said.

When asked about Al Akaria’s partnership with Alinma Investment, Al-Sharhan said the lender was chosen earlier this year as a long-term strategic partner to jointly develop a number of projects, including the newly launched Al Akaria-Alinma Fund for Real Estate Development.

The fund is worth SAR 1.5 billion, and additional projects that are equally large or even larger will be launched in the coming period, he said.

Al Akaria is currently the sole equity owner, while Alinma Investment is the fund manager. Alinma Bank will finance the projects. Other partners are expected to enter in the coming period, he added.

Yesterday, Al Akaria revealed that it signed an agreement with Alinma Investment to set up the first-of-its-kind, Alinma-Al Akaria Fund for real estate development, Argaam reported.