Logo of Emaar The Economic City
Emaar The Economic City (Emaar EC) entered into an agreement to sell a prime beachfront land plot in Murooj Golf Community District, King Abdullah Economic City (KAEC), as an in-kind contribution to Al Bilad Tourism Fund — a Capital Market Authority (CMA)-regulated Shariah-compliant closed-end private real estate investment fund, according to a statement to Tadawul today, March 30.
The impact of the land sale and subsequent investment (holding of the units) is expected to be recognized in Emaar EC's financial results of Q1 2023 onwards, it added.
In return for the land sale, Emaar EC will acquire units in the fund worth SAR 269.2 million, representing 41.15% of the fund’s equity.
The fund strategy is to develop and operate the resort under Rixos Premium brand (all-inclusive luxury resort and waterpark, comprising around 550 properties with lifestyle, retail and food and beverage offerings). This is in order to create value and exit at the planned maturity of 12 years, said the company.
Emaar EC signed, on Jan. 17, 2021, a framework cooperation agreement with the Tourism Development Fund, FTG Development Co., Albilad Investment Co. and Ekofine Holding BV to establish a SAR 1.8 billion closed-end private investment fund.
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