Key Takeaways
- • Alramz Real Estate Co. signed an agreement with SNB Capital to establish a Shariah-compliant real estate investment fund targeting SAR 650 million ($173.2 million) to develop the Ramz Al Raed residential project in Riyadh.
- • Alramz will serve as the fund's principal owner, developer, and exclusive marketer, positioning the company to capture 7% development fees and 2.5% marketing fees based on total project sales.
- • The project comprises approximately 500 residential units on a 26,590-square-meter plot in Al Raed district, with units designated for sale to end users rather than investor hold.
- • SNB Capital will manage the fund structure, with anticipated positive financial impact to Alramz spanning 2026–2029, supporting the company's post-IPO growth trajectory.
Summary
Alramz Real Estate Co. has entered into a partnership with SNB Capital to establish a Shariah-compliant real estate investment fund with a target capitalization of SAR 650 million to finance development of the Ramz Al Raed residential project in Riyadh's Al Raed district. The announcement, made via a statement to Saudi Arabia's Tadawul exchange, marks a significant deployment of capital following Alramz's recent initial public offering.
Under the agreement structure, Alramz will maintain primary ownership of the fund while assuming dual operational roles as both the project developer and exclusive marketer. This positioning allows the company to benefit from a 7% development fee and 2.5% marketing fee calculated against total project sales, creating multiple revenue streams beyond its equity stake. SNB Capital, an established real estate fund manager operating within the Saudi market, will serve as the fund manager responsible for fund administration and investor relations.
The Ramz Al Raed development encompasses approximately 500 residential units constructed on a 26,590-square-meter land parcel. Units will be marketed and sold directly to end users rather than held as investor inventory, aligning the project with the growing Saudi residential demand and the kingdom's Vision 2030 urbanization objectives. This end-user focus differentiates the project from pure-play institutional real estate investments and positions it within the affordable-to-mid-market housing segment.
Alramz projects the fund and underlying project will generate positive financial contributions through 2029, with the company identifying this venture as a core component of its investment portfolio expansion and growth strategy. The SAR 650 million fund size provides substantial capital for comprehensive project execution, including infrastructure, construction, and marketing phases. The Shariah-compliant structure ensures alignment with Saudi Arabia's Islamic finance frameworks and broadens appeal to institutional and retail investors operating within Islamic finance parameters.
Under the agreement structure, Alramz will maintain primary ownership of the fund while assuming dual operational roles as both the project developer and exclusive marketer. This positioning allows the company to benefit from a 7% development fee and 2.5% marketing fee calculated against total project sales, creating multiple revenue streams beyond its equity stake. SNB Capital, an established real estate fund manager operating within the Saudi market, will serve as the fund manager responsible for fund administration and investor relations.
The Ramz Al Raed development encompasses approximately 500 residential units constructed on a 26,590-square-meter land parcel. Units will be marketed and sold directly to end users rather than held as investor inventory, aligning the project with the growing Saudi residential demand and the kingdom's Vision 2030 urbanization objectives. This end-user focus differentiates the project from pure-play institutional real estate investments and positions it within the affordable-to-mid-market housing segment.
Alramz projects the fund and underlying project will generate positive financial contributions through 2029, with the company identifying this venture as a core component of its investment portfolio expansion and growth strategy. The SAR 650 million fund size provides substantial capital for comprehensive project execution, including infrastructure, construction, and marketing phases. The Shariah-compliant structure ensures alignment with Saudi Arabia's Islamic finance frameworks and broadens appeal to institutional and retail investors operating within Islamic finance parameters.
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