First Avenue mortgages Al Basateen Avenue project land to Alinma Bank

The financing, which was finalized on July 31, should underpin the project’s execution. It is also deemed a key step towards advancing the company’s strategy to expand its real estate portfolio and develop high-quality projects in prime locations across Riyadh.

First Avenue stated that securing the financing is a significant financial decision that will affect its assets during the development and execution phases. It is expected to positively impact revenues upon project completion, slated in 2027.

The project, covering an area of 30,000 square meters (sqm), aims to develop a luxury residential compound in the Al-Arid district of northern Riyadh.

There are no related parties involved in the transaction, it confirmed.

Last June, First Avenue renewed and raised a SAR 320 million Shariah-compliant credit facility from Alinma Bank to support its expansion plans and the execution of its real estate projects.

The funding is covered by promissory notes equal to the facility amount, a mortgage on the project land in favor of the bank and an assignment of proceeds from the financed project to Alinma Bank.