JEDDAH, 22 March 2005 — Al-Oula Development, a leading real estate company in Saudi Arabia, has completed preparations for a major real estate auction, described the largest in the world, involving sales of 1.2 million square meters of plots worth over SR1 billion.
Ayedh ibn Farhan Al-Gahtani, executive president of the company, said he expected big turnout of investors at the auction which will be held at 5 p.m. tomorrow at Lailaty Hall in Jeddah.
The lands offered for sale, known as Al-Nakheel plots, are owned by Al-Oula Development in partnership with Aflad Development Company. The plots are now ready to use for different purposes and could be developed as one of Jeddah’s outstanding landmarks.
“Our real estate plots are in attractive locations in the heart of Jeddah and could be developed into one of the main business centers of the city,” Al-Gahtani said. Real estate experts said Al-Nakheel plots could fetch more than SR1 billion ($226 million) in sales.
Real estate is one of the fast growing sector in Saudi Arabia and is estimated at more than SR1 trillion. A large number of investors, Saudis as well as foreigners, have shown interest in the sector as new projects are coming up all over the country.
“We have developed Al-Nakheel to become a model city that would serve the center of Jeddah and provide lucrative opportunities for investors and best living conditions for those who intend to buy plots in the area to build their homes,” Al-Gahtani said.
Located along Waliy Al-Ahed (Prince Abdullah) Road and Prince Majed Street, Al-Nakheel plots are close to King Abdul Aziz University as well as King Abdul Aziz Square, which will be opened shortly to become another landmark in the city.
“The strategic location, excellent planning and availability of all services make Al-Nakheel an attractive place for investment and I am sure that the auction will draw a large number of investors from within and outside Saudi Arabia,” said Dr. Abdul Aziz Turkistani, Al-Oula’s vice president for marketing and planning.
“Al-Nakheel plots are unique in the sense that they are going to play an important role in the future development of the city,” Turkistani said. As a result of its proximity to main roads, people can reach the area within no time. Investors can construct various types of buildings to meet the growing requirements of the sprawling city.
Real estate analysts expected big competition between prospective investors at the auction to win the largest number of plots. Emmar Middle East Company has already expressed its willingness to purchase 45 percent of the project and shares of the project have been widely exchanged due to increasing demand.
