Saudi-based NCB Capital, one of the region's largest asset managers, has successfully closed subscriptions to its AlAhli Sedco residential development fund after exceeding its target of SR350 million ($93.2 million).

The AlAhli Sedco Residential Development Fund is a public close-end Shariah-compliant fund that provides investors with capital growth by purchasing land plots in Jeddah for development, construction and sale of residential apartments targeting the middle income segment of the population.

“We are delighted with the positive response to this new fund, which offers investors a timely opportunity benefit from the kingdom’s thriving real estate sector,” remarked Khaled AlBraikan, the head of asset management at NCB.

“Our success in reaching the targeted amount of subscriptions in such a short time reflects investor confidence in NCB Capital’s capabilities in managing real estate funds and SEDCO Development’s expertise as one of the most successful real estate developers in the region,” he remarked.

The fund aims to have an internal rate of return of 10 per cent per year.  
 
Sedco Development, the company appointed as the developer of the new fund and responsible for managing and conducting the project development, has already acquired a 100 per cent interest in a 25,934 sq m site located in the Al-Salamah 2 district of Jeddah for the development of a medium density residential apartment project that is in accordance with the investment criteria of the Fund.

Al Braikan said: “At NCB Capital we are committed to providing our clients with innovative products and investment solutions, as well as helping them to assemble investment portfolios that are tailored to suit their individual needs and investment objectives."

"Our record of continuous success is backed by the skills of our certified wealth managers whose extensive knowledge, experience and expertise is simply the best in the region," he added.-TradeArabia News Service