Kingdom Holding Company, the investment company chaired by Saudi billionaire prince Alwaleed, said the work on its 'Kingdom Riyadh' project was going as per schedule with the first phase set for completion in the next four months.

Announcing the progress, Alwaleed said 75 per cent of the excavation, cut and fill and drainage works by the main roads have been completed at the 4.9 million sq m 'Kingdom Riyadh' project being developed in the east of Saudi capital by Kingdom Real Estate Development Company (Kred)

Kred recently signed up Colliers International for conducting the feasibility study on the project based on the market needs in terms of residential, office and commercial lands.

The study will also take into consideration the demands of investors who are willing and capable of developing the lands based on world class standards. This study will form the nucleus of the second phase in addition to the other planned projects at the site, said a KHC statement.  

In January this year, KHC had signed the agreement for the sale of a second land of the Kingdom Riyadh project. The area to be developed was bought by Subul Development Company, a Jeddah-based company, for SR300 million ($80 million).

The company then realized an estimated profit from the sale of SR185 million. This is the second sale to Subul Development following the earlier sale in September of 2012, which netted KHC a total of SR144 million.

Commenting on the project, Prince Alwaleed said: “Kingdom Holding’s real estate projects are on the solid path of success which will lead to  positive returns for  shareholders.”  

Talal Al Maiman, the executive director, Development and Domestic Investments, chairman and CEO of (Kred), a board member and Investment Committee member of Kingdom Holding Company and Jeddah Economic Company (JEC) expressed delight at the progress being made in the 'Kingdom Riyadh' project and its ability to attract developers to invest in the Riyadh project.

The cumulative sales amounted to SR550 million and net gains of SR329 million, he added.-TradeArabia News Service