Mulkia Investment Signs MoU to Establish Real Estate Fund for Buraidah Property Acquisition

Mulkia Investment Company announced on Monday the signing of a memorandum of understanding (MoU) to establish a real estate fund aimed at acquiring a plot of raw land in the city of Buraidah, covering a total area of 2.6 million square meters. The implementation of this initiative is slated to occur within 90 days from the MoU’s signing date.

The agreement allows for the possibility of extending this period with mutual written consent. It is emphasised that the MoU becomes effective only upon securing approval from the Capital Market Authority and the successful establishment of the fund. In the event that the company fails to obtain the necessary approval, the acquisition MoU is deemed void, relieving both parties of any obligations.

The company clarified that the transfer of ownership and payment procedures will proceed following the completion of fund financing by the bank, contingent upon receiving no objections from the Capital Market Authority regarding the establishment of the private real estate fund.

Mulkia further outlined the potential positive financial impact upon fund launch and property acquisition, foreseeing revenue generation from management fees for the company, with the anticipated launch expected in the second quarter of 2024.