Saudi group in $133m overseas project investment
Riyadh, January 5, 2014
Saudi conglomerate Abdulaziz Alsaghyir Holding said it had invested about SR500 million ($133.2 million) in the overseas real estate markets with focus on acquisition and developement of prime properties in the US and the European Union.
One of the major companies specialized in investment, contracting, building materials and real estate development sectors, Alsaghyir has acquired several real estates properties in America besides developing residential projects in Europe and Saudi Arabia during the last year.
Waleed Alsaghyir, the group VP said throughout 2013 the company had entered into property deals in a range of global real estate markets with the purpose of accomplishing a bundle of investment targets.
He pointed out that the real estate investment deals inked by the company in 2013 were mainly concentrated in the US, the UK and Saudi Arabia.
"At the foremost of these targets was entering the American real estate market in order to accomplish about 9 per cent annual cash return where dissociation takes place in five years," observed Alsaghyir.
"Additionally, it was expected that the value of the acquired real estate would increase at dissociation, thus achieving the investment target required. Consequently, we invested in the American real estate sector which is starting to be back on track after expiration of the negative consequences inflected by the world economic crises; actually the real estate situation in America is currently flowing from good to better," stated the top official.
The Saudi group acquired a number of real estate properties in several key states including Texas, California and the capital Washington, D.C, he added.
Alsaghyir pointed out that the group's key investment targets included the European market in order to achieve an internal rate of return on investment that is up to 30 per cent - where dissociation takes place in two or three years - via establishing and developing a number of residential projects in significant sites in Europe.
The company has already made substantial investment to establish and develop real estates in the heart of London in order to achieve the aspired investment target.
This comes alongside its real estate investments in Saudi Arabia, a booming property market.
Alsaghyir invests in the Saudi residential property sector through one of its real estate arms – Maskan Arabia Company – in which it possesses about 70 per cent ownership stake.
The company was originally founded for the purpose of providing high quality housing solutions and crafting the most prestigious housing standards through launching a number of villa projects that enjoy elegance of design and uniqueness of execution, said the official.
The company's investment portfolio comprises a broad range of residential projects and in the past three years, Maskan Arabia has managed to deliver three projects comprising 114 residential units.
The most prominent among the company residential projects are Maskan Villa (1), Maskan Villa (2) and Al Dar Project in the Al Ma'athe district in Riyadh.
Currently Maskan Arabia plans to complete its latest and hugest residential project - “Ritaj” which the company has started to develop in Northern Riyadh and comprises 292 residential units.
"We believe it to be a generously rewarding investment given the increasing demand for it in the coming years especially that the Kingdom is currently considered the Middle East economic center and enjoys security and economic stability," Alsaghyir added.-TradeArabia News Service