Alkhabeer Capital, the Jeddah-based boutique investment and asset management firm, announced in a media statement today that is planning a $400 million (SAR1.472 billion) investment programme to be rolled out over the next two years.
The firm intends to raise three funds targeting a total of SAR525 million including, for the first time, a fund targeting investments outside of the MENA region.
In addition, the firm plans to raise SAR125 million for a residential development fund in the UK.
The other two funds scheduled for launch are a SAR150 million residential development fund and a SAR250 million industrial property development fund for “build to suit” situations, both of which are based in Saudi Arabia.
“We are considering more mature markets such as the US and Europe and we are in the process of identifying which markets we will tackle next and how,” said Sherif Selim, director of asset management and head of real estate at Alkhabeer Capital.
Alkhabeer said it typically invests capital on behalf of Saudi high net worth individuals, family offices and institutions as well as institutions from elsewhere in the Gulf region for which it offers Sharia-compliant vehicles. Historically the firm has also seeded a significant portion of the capital in its funds.
The firm is now fully invested on its previous Saudi-Arabia development funds, Alkhabeer Land Development Fund I and Alkhabeer Land Development Fund II, which collected SAR290 million and SAR774 million respectively. Each was a single-asset fund.
“The firm remains bullish about Saudi Arabian real estate. We believe that Saudi is and will remain the market with the most potential amongst the other GCC countries for many reasons: Saudi Arabia is the largest country in the GCC with strong business fundamentals and robust economic growth forecasts, which all combined make it a very attractive market place to investors,” Selim added.
According to the latest research by global property services firm CBRE, Saudi Arabia produced GDP growth in 2011 of 6.8 per cent, the fastest growing rate since 2003. The firm noted that 2011 also saw Saudi Arabia’s government increase its public expenditure, including in areas such as housing and infrastructure, to a record $214 billion, 39 per cent more than originally planned. This year alone it has committed to investing $2.9 billion more purely on the country’s roads network, for example.