Hamad Bin Saeedan pens MoU for SAR 325M real estate fund

Hamad Bin Saeedan signs non-binding MoU to establish SAR 325 mln real estate fund

Hamad Mohammed Bin Saedan Real Estate Co. signed a non-binding memorandum of understanding (MoU) with BLOMINVEST Saudi Arabia to establish a real estate fund named HS Logistics Fund.

According to a statement on Tadawul, the fund will explore acquiring land plots in Riyadh with an estimated total area of 130,280 square meters and developing them into logistics projects comprising dry and temperature-controlled warehouses.

The projects will be operated, marketed, and sold as income-generating assets during the fund’s term, after which the fund will be liquidated and its returns distributed to investors upon maturity.

The company said the project’s initial total cost is estimated at SAR 325 million. It noted that the developer fees payable to Hamad Bin Saeedan will amount to 11.5% of actual development costs.

The fund will have a three-year term, extendable by an additional two years. A private placement is proposed for November or December 2026, subject to the approval of the Capital Market Authority (CMA).

The MoU will remain valid for six months from the signing date or until completion of the fund’s establishment procedures, whichever comes first. It may be extended with the written consent of both parties.

The company said the MoU has no financial impact at present and that any future financial impact will be announced when applicable. It added that there are no related parties.