Saudi Arabia-based real estate development company, Retal Urban Development Company has announced that one of its affiliates, Remal Al Khobar Real Estate Company, has signed a facility agreement (Tawarruq) with the kingdom’s Tourism Development Fund (TDF).
Retal Urban Development Company, which owns a 50 percent direct stake in the company, said in a statement that the limit of the facilities has been set at $40.6 million (SR150 million) for a 15-year period.
It is guaranteed by a promissory note in addition to a corporate guarantee, said Retal in its filing to the Saudi bourse Tadawul.
The company further noted that the financing has been secured to fund the Nobu hotel, residential units, and a restaurant located in Al Khobar city.
Last month, Retal signed a sub-development agreement with the state-owned National Housing Company (NHC) in order to build 759 housing units in Al Fursan district 1, Riyadh, at an estimated cost of $229.75 million (864 million Saudi riyals). The developer stated that the project will cover a land area of 227,837 square meters and would be funded through off-plan sales and internal resources.
Earlier this year, Saudi TDF entered into a partnership with the region’s leading food delivery firm Jahez in order to improve the restaurants and cafés sector’s activities in tourist destinations.
Under the MoU, the TDF will provide its financing solutions and offer the opportunity to obtain financing and investment facilities for Jahez clients of micro and small enterprises.