Knowledge Economic City signs framework deal with Sidra Capital, Raseel Properties for real estate investment fund

Knowledge Economic City (KEC) announced the signing of a framework agreement with Sidra Capital and Raseel Properties to establish a closed-ended private real estate investment fund. Sidra Capital will manage the fund upon completion of setup procedures and receipt of necessary approvals from relevant authorities.

The announcement was made under the patronage of Prince Salman bin Sultan bin Abdulaziz Al Saud, Governor of Madinah, as part of the Madinah Investment Forum held at the Madinah Chamber of Commerce.

The fund aims to develop the Al Duha Madinah project, situated on a 33,274-square-meter plot of land along King Abdulaziz Road, near a Bus Rapid Transit (BRT) stop and KEC’s headquarters, within the Knowledge Economic City master plan. The Al Duha Madinah project is a mixed-use development comprising hospitality, residential, retail, and office spaces. It is expected to include a 150-key hotel, 576 residential apartments, 20,000 square meters of office space, and various retail areas.

The project will also feature a large reception center, cultural and social hubs, pedestrian walkways, green parks, and smart mobility solutions, connecting its components. These elements align with Saudi Vision 2030 and the objectives of the Madinah Governorate, the Ministry of Tourism, and the Ministry of Culture. The development also supports the Quality of Life Program by promoting open spaces, green areas, pedestrian-friendly environments, and multifunctional halls, reflecting the concept of “humanizing cities.”

Under the agreement, Sidra Capital will serve as the fund manager, Raseel Properties as the project developer, and Knowledge Economic City as the primary investor by contributing the land as an in-kind share in the fund. The fund’s total investment is estimated at SAR 1.04 billion. The fund is expected to launch in the first quarter of 2025, with project completion targeted for the first quarter of 2029.

In a statement, the company noted that the framework agreement currently has no financial impact. The financial implications will be determined upon the fund’s launch and the transfer of the land’s ownership to the fund. Additionally, there are no related parties involved in the framework agreement.