RIYADH: In a move to expand its funding base, Saudi real estate developer ROSHN signed SR6 billion ($1.6 billion) worth of credit facilities deals with three of the Kingdom’s leading banks.
The Public Investment Fund-owned developer termed the deals one of the “landmark debt transactions” in the real estate development market as it looks to ramp up its operations in the Kingdom.
ROSHN signed agreements with the Saudi British Bank, Bank Albilad, and Al Rajhi as part of its strategy to obtain external funding for its projects.
With a total value of SR2 billion each, it said the new credit facilities will constitute a fundamental change in the real estate sector as well as a basis for diversifying financing.
“Taken together, these deals are an important milestone for ROSHN. By working with the Kingdom’s dynamic financial sector, we can accelerate the ambitious development program that is bringing our new way of integrated, sustainable living to cities across the Kingdom,” said ROSHN Group CEO, David Grover.
The developer said the new financial agreements fall in line with the framework of its objective of building vital urban communities covering nine cities including Riyadh, Jeddah, Al-Kharj, Hofuf, Qatif, Makkah Al-Mukarramah, Abha, and others.
“These deals are a strategically important development for us. By securing credit facilities with leading financial institutions, we are establishing an efficient and sophisticated funding base capable of boosting shareholder return and driving our massive development program for years to come,” said ROSHN Group Chief Financial Officer, Avinash Pangarkar.
Last month, the national developer signed a land purchase agreement with real estate firm Ajdan to develop over 270 family villas in its flagship community SEDRA.
Encompassing an area of 80,700 sq. m, the new villas will be integrated into SEDRA’s development of walkable residential neighborhoods in Riyadh.
SEDRA comprises eight phases across 20 million sq. m which will accommodate over 30,000 homes and around 300 amenities.
Abdulaziz Mohammed AlOnaizan, CEO of Bank Al Bilad, confirmed that signing the agreement with ROSHN comes within the framework of building many effective partnerships to contribute to achieving the objectives of the Kingdom’s Vision 2030, in addition to Bank Al Bilad’s support of the housing sector in the Kingdom as being one of the most prominent and leading banks in providing end-to-end solutions for all real estate financing products.
He indicated that this comes as a continuation of the important role played by the bank in meeting the housing needs of citizens through the various real estate financing programmes provided by Bank Al Bilad to its customers to own the house of their choosing with competitive advantages.
Waleed Al Moqbel, managing director and CEO of Al Rajhi Bank, added: “The bank aims to be a pioneer in offering all finances to their customers covering all areas of financing, particularly in home financing through a variety of different financial options that stand out and contributes by supporting housing projects as well as real-estate developers, to aid in realizing one of the pillars of Vision 2030 which aims to increase residential property ownership in line with our direction and strategy for sustainable financial solutions and reach out to a larger customers base and keep up with the increasing demand for owned property in the Kingdom.”
Earlier in November, ROSHN started the key handover at the first phase of development at SEDRA, ahead of the scheduled time.
In the same month, it also launched the first phase of its Al Arous project in Jeddah, named ‘The Bride of the Red Sea’ which will offer more than 2,200 single-family units.
ROSHN aims to further partnerships with real estate developers in the Kingdom in a bid to boost the sector by providing investment opportunities and creating new jobs.