Jabal Omar eyes diverse financing tools to advance plans, says CEO

Jabal Omar Development Co. is seeking to advance its strategic plans partly by fine-tuning its financial model and diversifying sources of finance, CEO Yasser Faisal Al-Sharif told Argaam at a local industry event recently.

The company’s capital diversification strategy may include the issuance of sukuk, real estate traded funds (REITs), while pursuing other financing tools to advance its mega projects.

The company may also forge new partnerships with investors in a bid to tweak its risk/return profile.

JODC recently obtained initial regulatory license to sell 741 off-plan hotel units in the third phase of Jabal Omar Address Makkah project. It also sold out 90 residential units to Albilad Capital and collected SAR 1.105 billion in return. 

The real estate developer saw an improvement in operating revenue from hotels and commercial malls, and plans to develop 3,000 residential units and 15,000 hotel rooms within a few years.

Its Jabal Omar Jumeirah Makkah project was 50 percent completed, Al-Sharif said, adding that the project’s land area was incremented by around 500,000 square meters (sq m).

Regarding the planned merger with Umm Al Qura Development Co., Al-Sharif said both parties agreed to postpone talks, and that further updates would be announced on time.

Al-Sharif remained optimistic about local real estate market, envisioning a pickup in demand, and commended the positive role undertaken by Saudi housing ministry, and the ease of access to credit.