Riyadh – Mubasher: Knowledge Economic City has signed a non-binding term sheet with Albilad Capital to appoint the latter as the manager for a private closed-ended real estate investment fund, according to a bourse disclosure.

The fund is designed to provide the necessary investment mechanism to finance and develop the first phase of the Al Multaqa hospitality project in Madinah, with an estimated total development value of SAR 1.50 billion, including the land value.

The development package includes the JW Marriott hotel with approximately 288 rooms, a Marriott hotel with 327 rooms, and 295 branded residential units. Located on King Abdulaziz Road, the project will be linked via a pedestrian bridge to the Al Multaqa Mall and existing Hilton-branded towers.

The agreement remains valid for a period of 6 months to complete the fund establishment procedures, subject to obtaining regulatory approvals from the Capital Market Authority (CMA) and securing necessary project financing.

Knowledge Economic City expects the fund to support its strategy of developing sustainable, high-return hospitality projects in alignment with the Kingdom’s Vision 2030 goals for tourism and quality of life. No related parties were identified in the transaction.

Earlier this month, the group secured Sharia-compliant financing totaling SAR 152 million from the Saudi Investment Bank (SAIB).