Arab News, Wednesday, Jan 04, 2023 | Jamadi Al Thani 11, 1444
PIF-owned developer ROSHN signs $1.6bn credit facilities with Saudi banks to ramp up operations
Saudi Arabia: 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.
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.