Banan establishes ‘Artal Real Estate Fund Four’ to develop hospitality project

Artal Real Estate Fund Four will have a 4 year term, Banan says

Banan Real Estate Co. established a closed-end real estate fund in partnership with Artal Capital Co., Rakan AlTassan, and its subsidiary Qimam Noshoz Real Estate Development Co.

“Artal Real Estate Fund Four” will have a four-year term, Banan said in a statement to Tadawul.

Fund manager Artal Capital will be responsible for managing its investments and operations, Banan will act as the project’s exclusive developer and marketer.

The fund aims to develop a hospitality project on a 3,278.8-square-meter plot of land located in Al Rahmaniyah district.

The land is equally owned by Qimam Noshoz and Rakan Altassan. Banan said it will contribute a cash stake of SAR 6.5 million to the fund.

The company expects the fund to have a positive financial impact through generating revenue from development fees included in the agreement, in addition to its stake in the fund, which would enhance financial returns over the medium and long term.

The company also noted that its subsidiary, Qimam Noshoz, divested a 50% stake in the land to Rakan Altassan for SAR 30.33 million.