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Mon 24 May 2004 04:00 AM

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Rikaz raises cash for Al Fanar

Saudi real estate developer, Rikaz, aims to raise $153.4 million for the development of the Al Fanar project in the Eastern Province

Rikaz, the Saudi real estate behemoth, has launched a subscription aimed at raising $153.4 million for phase two of its City Fanar development.

32,983 shares will be offered to investors at a cost of US $4,642 each, in accordance within an Islamic investment principal called Musahamat. Rikaz expects that investors will see a return of 50% over two years.

“City Fanar presents investors with a unique 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 at the human scale,” said Sheikh Khalid H. A. Al-Ghatani, president and CEO, Rikaz.

The Fanar project, or ‘Future City’, will cover 3.3 million square metres and contain a combination of residential, commercial and retail space. The project will be developed around a 300,000 square metre manmade lagoon.

“Our vision is to establish the City Fanar project as the commercial heart of the Eastern Province for Saudi Arabia,” said Sheikh Khalid.

Rikaz has developed over a dozen projects based on the Musahamat principle, with investment totalling around SR3.5 billion (US $950 million.)

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