JEDDAH, 1 June 2004 — Rikaz, Saudi Arabia's leading real estate development company, is set to issue some 32,983 shares for the second phase of its flagship City Fanar project - the unique waterfront 'Future City' built around a 300,000 square meter manmade lagoon in Alkhobar.
Rikaz is issuing shares worth $153.4 million which are to go on sale from today. The equity will be subscribed within a real estate investment portfolio, in accordance with the real estate shareholding "Musahamat" regulation, recently approved within an investment structure compliant with Shariah.
The shares, priced at $4,642 each, are for the purchase and development of the 1.9 million square meters waterfront property.
"The response we have had since last week's fund launch has been incredible," said Rikaz President and CEO Khalid H. A. Al-Gahtani.
"The City Fanar project presents investors with a workable opportunity to take part in a project that will bring a solid return on investment, whilst addressing the essential links between traditional values and contemporary needs," he said.
Rikaz expects a return on investment of 50 percent over a maximum of 24 months for buyers.
"Rikaz developers have implemented and developed more than 12 real estate projects based on the Musahamat principle, with investment totaling over SR3.5 billion. Through these endeavors, Rikaz has delivered an average return of investment to its shareholders of 35 percent annually," said Al-Gahtani.
He added, "City Fanar will exceed the conventional norms for projects that have taken shape either in the public sector or the private sector and that will be reflected in the rewarding gains for all investors who place their faith and support in the project."
Designed to meet the challenges of the future, City Fanar is a meticulously planned environment that embraces futuristic technology, design and urban planning ideologies.
Integrating a variety of functions at City Fanar are some of the most eminent names in architectural design, city master planning, engineering, construction, law and marketing communications.
"Although a completely self-contained community, City Fanar invites the world with open arms to be a part of its grand vision for the future, presenting an awakening of greater possibilities for commerce, enterprise and trend-setting lifestyle attainments," added Al-Gahtani.
Rikaz has also appointed property development and management company, PolyStar Incorporated, to manage its City Fanar project.
PolyStar will take responsibility for management services, design and construction coordination during the project's first phase.
Established in 1997, in the wake of the rising demand for real estate development, Rikaz, a subsidiary of the well-known HAK Group, has focused its core activities in the purchase, development, leasing, management, construction and acquisition of, and investment in real estate assets.