SMC to set up SAR 413M Al-Wadi Real Estate Fund

Specialized Medical Co. (SMC) signed an agreement to establish Al-Wadi Real Estate Fund with BLME Capital, and to transfer its land ownership to the fund.

In a statement to Tadawul today, Dec. 22, the company said the fund’s target size is about SAR 413 million, comprising equity capital of nearly SAR 163 million (39.5% of the fund’s total size) and debt financing of around SAR 250 million, or 60.5% of the fund’s total size).

Under the deal, SMC will contribute a land plot it owns, spanning an area of about 4,210 square meters, as an in-kind contribution to the fund’s capital at an estimated value of around SAR 100 million. This represents about 61.3% of the fund’s capital and roughly 24% of the fund’s total size, based on an independent third-party valuation at market value.

It added that the remaining capital of approximately SAR 63 million will be raised in cash from institutional and qualified investors to finance construction and development costs, pre-operational expenses, and contingency reserves.

The company noted that the fund’s main objective will be to develop a mixed-use project on the land contributed by the company, which is located on the Northern Ring Road in Riyadh. It added that it will announce any related updates or developments in due course.

The company also stated that BLME Capital, the contributing company, is a subsidiary of Bank of London and the Middle East, a Shariah-compliant bank with an independent Shariah supervisory board. It provides wealth management solutions focused on real estate, commercial real estate financing, and savings products.

According to Argaam data, SMC recently announced its intention to establish Al-Wadi Real Estate Fund as a closed-end, Shariah-compliant real estate investment fund.