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Saudi-listed Inmar Company for Real Estate Development and Investment is exploring the creation of three real estate investment funds worth a combined SAR1 billion ($267 million).
The company has signed a memorandum of understanding with Al Rajhi Capital to evaluate the proposed funds.
The initiative could expand Inmar's investment platform and create new opportunities in Saudi Arabia's growing real estate market.
Three Real Estate Funds Under Review
The MoU establishes a framework for both companies to assess the feasibility of establishing three real estate investment funds.
The proposed funds would have a combined target value of SAR1 billion.
Inmar and Al Rajhi Capital will work together on the necessary assessments before deciding whether to proceed with the fund structures.
The companies will also evaluate the commercial and financial viability of the proposed investments.
Valuation and Due Diligence Planned
The next stage will include property valuations, due diligence and other required studies.
The parties will also complete the financing procedures associated with the proposed funds.
Regulatory approvals will be required before the funds can be formally established.
This process is intended to assess the assets and investment opportunities before capital is committed.
Al Rajhi Capital to Support Fund Structure
Al Rajhi Capital is participating in the initiative as Inmar's partner for evaluating the proposed investment vehicles.
The collaboration combines Inmar's real estate development and investment activities with Al Rajhi Capital's investment management capabilities.
The partnership could help establish professionally managed real estate investment structures targeting opportunities in Saudi Arabia.
MoU Valid for 120 Days
The memorandum of understanding is valid for 120 days.
It will automatically be extended for equivalent periods if the fund establishment process or related procedures remain ongoing.
The extension mechanism provides the companies with additional time to complete due diligence, financing arrangements and regulatory requirements.
Saudi Real Estate Market Attracts Capital
The proposed funds come as Saudi Arabia's real estate market continues to attract significant investment.
Residential, commercial and mixed-use developments are benefiting from population growth, economic diversification and infrastructure investment.
The Kingdom's Vision 2030 programme is also supporting the development of new urban centres and real estate assets.
These conditions are creating opportunities for investment managers and property companies.
Also Read: Rosewood AMAALA Opens on Saudi Arabia's Red Sea Coast
Real Estate Funds Offer New Investment Channels
Real estate investment funds can provide investors with structured exposure to property assets.
They can also enable professional managers to pool capital for specific development or income-generating opportunities.
For developers, fund structures can provide an additional source of capital for future projects.
Inmar's proposed funds could therefore support the company's broader investment and development strategy.
Regulatory Approval Remains Important
The proposed funds are still at the evaluation stage.
The companies must complete the required studies and obtain relevant regulatory approvals before establishing the funds.
The final structure, assets and investment strategy will depend on the outcome of the feasibility process.
No final fund launch has been announced at this stage.
Also Read: Saudi Industrial Base Hits 13,660, Occupancy Tops 90%
Inmar Expands Investment Strategy
The proposed SAR1 billion fund programme could provide Inmar with a new platform for expanding its real estate investment activities.
Working with Al Rajhi Capital could also support the development of institutional investment structures.
If approved, the funds could channel additional capital into Saudi Arabia's property sector.
Saudi Property Investment Outlook
Saudi Arabia's expanding real estate sector continues to create opportunities for developers, investors and asset managers.
The proposed Inmar and Al Rajhi Capital partnership reflects the growing use of investment funds to participate in the Kingdom's property market.
With three funds under evaluation and a combined target value of SAR1 billion, the initiative could become a notable addition to Saudi Arabia's real estate investment landscape.
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