The firm intends to raise three funds targeting a total of SAR525m including, for the first time, a fund targeting investments outside of the MENA region.
In addition, the firm plans to raise SAR125m for a residential development fund in the UK.
The other two funds scheduled for launch are a SAR150m residential development fund and a SAR250m industrial property development fund for “build to suit” situations, both of which are based in Saudi Arabia.
Sherif Selim, director of asset management and head of real estate at Alkhabeer Capital commented:-
“We are considering more mature markets such as the US and Europe and we are in the process of identifying which markets we will tackle next and how.”
Alkhabeer typically invests capital on behalf of Saudi high net worth individuals, family offices and institutions as well as institutions from elsewhere in the Gulf region for which it offers Sharia-compliant vehicles. Historically the firm has also seeded a significant portion of the capital in its funds.
The firm is now fully invested on its previous Saudi-Arabia development funds, Alkhabeer Land Development Fund I and Alkhabeer Land Development Fund II, which collected SAR290m and SAR774m respectively. Each was a single-asset fund.
While Alkhabeer is now extending its investing horizons, Selim commented: “The firm remains bullish about Saudi Arabian real estate. We believe that Saudi is and will remain the market with the most potential amongst the other GCC countries for many reasons: Saudi Arabia is the largest country in the GCC with strong business fundamentals and robust economic growth forecasts, which all combined make it a very attractive market place to investors.”
According to the latest research by global property services firm CBRE, Saudi Arabia produced GDP growth in 2011 of 6.8%, the fastest growing rate since 2003. The firm noted that 2011 also saw Saudi Arabia’s government increase its public expenditure, including in areas such as housing and infrastructure, to a record $214bn, 39% more than originally planned. This year alone it has committed to investing $2.9bn more purely on the country’s roads network, for example.
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