Riyad Capital, Announced in Riyadh at a press conference last Wednesday the launch of Riyad Capital Real Estate Fund - Burj Rafal for IPO. Mr. Adel Al Ateeq, Asset Management Director in Riyadh Capital confirmed: "that financial of the fund reached 350 million riyals, extended for four years, and may continue for an additional two years, indicating that the fund provides IPO as a lowest limit of 5000 SR during the period of the IPO, as the price of the units did not come up yet.” He added: "Burj Rafal will not contribute in solving the housing problem only in a limited way because it is essentially a multi-use complex, oriented to the higher income. He declared that the investment in the fund is still subject to the same risks faced by investing in stocks; pointing out that the unit price will be subjected to fluctuation either up or down, which could jeopardize the value of the original investment to rise or fall.” Mr. Al Aqeel added: "that the idea of establishing the Fund´s return for the continuation of the growing demand for real estate investment in the Kingdom in general with the increasing pace of population growth and the growth of economic activities, also reflects the Fund´s continued trend of asset management at Riyadh´s financial diversify investment and benefit from its experience and also the opportunities offered by the Saudi market to serve our customers and meet the diverse investment needs at various levels. He pointed out that fund of this kind, shut down, invest in the Burj Rafal in accordance with the Shariah compliance by the Commission of Riyadh Capital, adding that the fund is licensed and registered in accordance with the Rules of Real Estate Investment Trusts issued by the financial market. He added: UNFPA is more secure than the real estate contributions, so that it works with the consent of the financial market; I also expected to benefit from real estate development witnessed in Riyadh. The Director of the Asset Management Department in Riyadh Capital said that the idea of a new real estate funds in the Kingdom is considered as a new idea , it´s also one of the first funds raised, pointing out that the opportunities for small investors is available, as it provides for small investors to take advantage of the property.
On the other hand, Mr. Majed Al Hogail, RAFAL - CEO, developer of Burj Rafal said: "the Fund is considered an addition in terms of product type, its rarity and its services, especially in the significant shortage of such products, the good thing is that it will be under the systems of the Capital Market Authority and managed by financial companies leading such as Riyadh Capital to ensure the common benefit. In this aspect, RAFAL Real Estate Development Company has signed agreements with other parties in this regard, where the first agreement was exclusive with Burj Rafal "developer" where their job is the management, project development and implementation of administrative processes. Another agreement which is a consulting services company with E.F.S which provides consulting services in the area of facilities management for the project. RAFAL has also signed several agreements with Kempinski Hotel holds under management and operation of the hotel in the event of termination. The agreement also included the design services and supervision construction between the Company and P&T under which provides architectural services, engineering services and construction supervision of the project.