ALKHOBAR, 25 May 2004 — A Saudi real estate development company will soon begin selling 32,983 shares in phase two of its flagship project, City Fanar. The shares are worth SR525.25 million ($153.4 million) and will be sold within a real estate investment portfolio.
Khalid H. Al-Gahtani, president and CEO of the company, Rikaz, said at a press conference at the Gulf Meridien Hotel on Sunday evening that the company had a track record of 12 projects amounting to SR3.5 billion and was embarking on its most ambitious task to date, City Fanar. The project amounts to 300,000 square meters around a manmade lagoon north of Alkhobar. The shares, priced at $4,642 each, are for the purchase and development of the 1.9 million square meters water front property. Rikaz expects a return on investment of 50 percent over a maximum of 24 months for the buyers.
Rikaz has delivered an average return of investment to its shareholders of 35 percent annually on its previous projects.