SAB Invest signs financing agreement exceeding SAR 1 billion for its real estate fund in Capital Gate project

SAB Invest announced the signing of a financing agreement with Saudi Awwal Bank (SAB) for SAR 1.1 billion. The fund's total assets are expected to be valued at SAR 2 billion.

In a statement, the company said the agreement is intended to support the implementation of the Capital Gate Project on King Fahd Road, Sahafa District. The move is part of the company's strategy that aims to direct capital to real estate projects in strategic locations.

Debt financing is a core component of the fund’s capital structure and is intended to accelerate project development, enhance capital efficiency through the diversification of funding sources, as well as strengthen investor confidence by increasing the attractiveness of Capital Market Authority (CMA) regulated real estate funds to institutional investors seeking exposure to the Riyadh real estate market.

The company confirmed that the project is part of efforts aimed at enhancing the quality of Riyadh’s urban landscape, in line with the objectives of Saudi Vision 2030 and the strategic direction of the Royal Commission for Riyadh City (RCRC).

Ali Almansour, Managing Director and CEO of SAB Invest, said: “Securing debt capital at this scale marks a key milestone in our commitment to Riyadh's urban transformation. It also reflects the confidence of the financing partner in our strategy and the fundamental strength of the Kingdom's real estate market. By bridging the gap between capital and opportunity, we are supporting the realization of Saudi Vision 2030, empowering investors to play an active role in the transformation of Riyadh’s landscape and quality of life.”

Yasser Albarrak, Chief Corporate and Institutional Banking Officer at SAB, emphasized that SAB continues to support large-scale initiatives aligned with Saudi Vision 2030, noting: “Our participation in financing this project is based on our assessment of SAB Invest’s structuring approach and the quality of the underlying assets. We view this financing as a strategic allocation of capital that supports sustainable economic development in the Kingdom.”

Feras AlBanyan, CEO of Osool Integrated Real Estate Co, stated that the signing of the financing agreement marks a key milestone, enabling the fund to advance into the execution phase and deploy capital efficiently in line with its investment objectives. He added that the agreement reflects strong market confidence in Osool’s ability to deliver high-quality, large-scale developments and highlights the importance of strategic partnerships in securing the financial structure required to enhance asset quality, generate long-term value, and contribute to improving quality of life in Riyadh.

Tatweer Company, the development partner, the development partner, noted that transitioning from planning to execution through this agreement enables the delivery of an integrated development comprising premium offices, retail spaces, and hospitality facilities, positioning the project as an iconic feature on King Fahd Road.

SAB Invest said the financing agreement is instrumental in supporting its ongoing growth strategy, given the focus on opportunistic deals within the real estate market.