BlomInvest Saudi Arabia to unveil 5 real estate funds amid success

RIYADH – In a bid that proves its confidence in the investment opportunities of rewarding returns to investors that are offered by the Saudi real estate sector, BlomInvest Saudi Arabia – the investment arm of Lebanon and Al Mahjar Banks, KSA – intends to launch five new real estate investment funds throughout the next year. The step is taken in light of the company’s success in establishing and managing six real estate funds in Riyadh, Jeddah and Makkah. The current funds are: “Blom Maskan Arabia Real Estate Development Fund”, “Blom Manazel Makkah Real Estate Fund”, “Blom Solidere Real Estate Fund”, “Blom Salboukh Real Estate Development Fund”, Blom Amjal Real Estate Fund” and “Blom Al Sharq Real Estate Fund” – with estimated total value of assets at SR 2.6 billion.

Eng. Abdullah AlRashoud, BlomInvest Saudi Arabia CEO, said: “In light of the significant success of our company regarding these funds and based on our confidence in the Kingdom’s real estate sector, BlomInvest Company shall quest to benefit from its earlier successes in financing and managing real estate funds in launching new ones throughout the coming year”, and stressed that “the real estate funds continue to be a valuable investment option.”

“At BlomInvest Saudi Arabia, we are planning to launch a broad variety of real estate funds totaling to SR 2.35 billion. These funds are represented in an income-generating medium-term real estate fund which invests in Saudi real estates that generate income, a real estate fund aiming to establish and manage residential complexes in Riyadh and another two real estate funds which target developing raw lands in south and east Riyadh. That’s in addition to working on a private equity fund at a target value of SR 1.8 billion.

It’s expected that the delivery of the first of these different funds shall begin at the end of this quarter (2013), thus providing a varied package of investment possibilities for different customer segments,” AlRashoud added.

Moreover, he said investment activity in the real estate sector assumes a key position in the works and activities of “BlomInvest Saudi Arabia” as the named sector is currently considered one of the most significant sectors in attracting investments in the entire Kingdom.

“The rewarding and relatively rapid returns, in addition to the consistency of profits in the real estate sector due to the increase in demand, represent the most important guarantees that investment companies seek,” he further said.

“We totally believe in real estate investment opportunities in the Saudi market and we’re working to launch even more real estate Funds of local traits. In fact, if we sense the availability of any feasible real estate opportunities in neighboring markets we surely won’t hesitate in targeting them. Moreover, BlomInvest Saudi Arabia shall continue to explore more investment opportunities and also to share with the investors the returns gained by different projects,” AlRashoud emphasized.

The CEO noted that the importance of real estate funds lies in their ability to provide investment tools under the direct supervision of capital market authority in the Kingdom which consequently helps investors assured about their investments.

That’s in addition to the management mechanism of these funds as well as the disclosure, transparency and possibility of continuous follow-up which the surveillance guarantees.

AlRashoud said the company follows a somewhat conservative strategy based on diversifying investments and activities, besides analyzing each investment with precision for the purpose of minimizing the associated risks to the least possible.

Besides, he stressed that BlomInvest Saudi Arabia provides a combination of financial tools – a step through which the company aims to achieve the multiple objectives behind launching real estate funds. In this way, the company, on one hand, works to accomplish rewarding returns to investors engaged in such funds, and on the other, offers ideal real estate units to customers – especially that this step has revealed a real picture of BlomInvest power to create such combination.  – SG