AYYAN inks MoU to set up private fund for SAR 600M project

AYYAN Investment Co. signed a non-binding memorandum of understanding (MoU) with Al Rajhi Capital and Sumou Holding Co. to establish a private real estate fund to develop a mixed-use project in Riyadh’s Al Janadriyah district, with an estimated value exceeding SAR 600 million.

In a statement to Tadawul, AYYAN said the project will span 83,446 square meters. The fund will own the land and develop a property comprising residential and commercial spaces, with AYYAN contributing its land holdings as an in-kind investment.

The MoU is valid for 90 days from the earlier of the signing date or the completion of the fund’s establishment procedures and may be renewed subject to approval by all parties.

Under the agreement, Al Rajhi Capital will act as fund manager, Sumou Holding as project developer, while AYYAN will provide the land as an in-kind contribution. The developer may contribute either in cash or in kind, with final participation ratios to be determined upon the fund’s establishment.

AYYAN said there is no financial impact at this stage and any future impact will be disclosed in due course.