Swicorp, a leading corporate asset management and private equity firm, has partnered with Saudi-based Bawabat Makkah Company to launch a SR1 billion ($266 million) real estate development fund.

The “Bawabat Makkah 1st Real Estate Development Fund” involves the development of a 1.5 million sq m site which is located inside the Bawabat Makkah area between Makkah-Jeddah highway and Al Lith Highway.

An agreement was signed between Dr Osama Albar, the Mayor of Holy Makkah and board chairman of Bawabat Makkah Company and Kamel Lazaar, the founder and chairman of Swicorp, a CMA licensed investment bank, to jointly launch the fund.

Bawabat Makkah Company is a wholly-owned subsidiary of Al Balad Al Ameen (which is the real estate development and investment arm of the Makkah Municipality).

Essam Kalthoum, the managing director of Bawabat Makkah Company, said the fund, which is likely to be launched by the second quarter of 2014, will be aimed principally at the retail investors to allow the public to participate in an attractive real estate development opportunity.

In his comments, Lazaar said Swicorp was delighted to contribute to the development process for city of Makkah through the new fund.

"We are confident that with our experience and expertise in asset management and real estate financing, we will be able to successfully launch and execute this Fund together with Bawabat Makkah Company," said the top official.

"We hope that this Fund will be the start of a long term mutually beneficial relationship between both parties. We firmly believe that this fund will be a great addition to the range of products and funds that Swicorp carefully select to provide to its clients in order to help them achieving their objectives," he added.-TradeArabia News Service