Swicorp, a major Saudi investment banking, private equity and asset management firm focused on the MENA region and Turkey, has announced the successful closing of a private placement subscriptions for the Al-Dhawahi Real Estate Development Fund after raising SR78.1 million in equity, along with structuring a SR68 million facility loan from a local bank.

The fund was established by Swicorp in partnership with Nesaj Development Company, a subsidiary of the Al-Fozan Group. Nesaj will develop and sell 133 mid-income villas in Dammam.

So far, the skeleton construction phase has been completed with some villas beginning the finishing work. The fund is expected to return money to investors by the end of 2015/beginning of 2016.

There was a strong interest from investors during the offering period resulting in the fund being oversubscribed and the equity was raised from institutional and individual investors.

Kais Mbarek, head of asset management, said: “Swicorp is honored to take the role of fund manager for Al-Dhawahi. We are confident that with our experience and expertise, we will be able to generate attractive returns for fund investors in partnership with Nesaj Development Company and hope that this fund will be the start of a long-term mutually beneficial relationship between the two parties.”

Sameer Akbar, CEO of Nesaj Development Company, said: “We in Nesaj are looking forward to develop a high standard residential community to the middle income Saudi family. Al-Dhawahi is going to be the project. Its urban pattern, architectural design of villas, and quality of the contacting and materials are all distinguished. Many customers are already contacting us to book what suites them from the variety of villas in Al-Dhawahi. We are also excited with the partnership of Swicorp.”