Banan Real Estate has signed an MoU to establish a CMA-licensed, Shariah-compliant private real estate fund to develop a hospitality project in Riyadh
Banan Real Estate Co. signed a memorandum of understanding (MoU) with Artal Capital and Rakan Al-Tasan to establish a Shariah-compliant private real estate investment fund, licensed by the Capital Market Authority (CMA), according to a statement to Tadawul. 
The fund will acquire a land plot spanning 3,278.8 square meters in Al Rahmaniyah District, owned by subsidiary Qimam Noshoz Real Estate Development Co., the statement added.
Under the MoU, both parties agreed on the development of a hospitality project on the land subject to the project; and the appointment of Banan Real Estate as the exclusive developer and marketer of the project, whereby it will undertake development works, supervise execution, and market the project in line with the approved plan.
They further agreed on the appointment of Artal Capital as the fund manager. The fund in-kind units will be held equally by Qimam Noshoz and Rakan Al-Tasan.
The MoU duration is three months from the date of signing, renewable upon written approval from all parties.
There are no related parties involved, the statement added.
The relevant financial impact will appear upon the actual commencement of the project’s execution, represented by development-related revenue in favor of Banan Real Estate.
Banan Real Estate has signed an MoU to establish a CMA-licensed, Shariah-compliant private real estate fund to develop a hospitality project in Riyadh
Banan Real Estate Co. signed a memorandum of understanding (MoU) with Artal Capital and Rakan Al-Tasan to establish a Shariah-compliant private real estate investment fund, licensed by the Capital Market Authority (CMA), according to a statement to Tadawul.
The fund will acquire a land plot spanning 3,278.8 square meters in Al Rahmaniyah District, owned by subsidiary Qimam Noshoz Real Estate Development Co., the statement added.
Under the MoU, both parties agreed on the development of a hospitality project on the land subject to the project; and the appointment of Banan Real Estate as the exclusive developer and marketer of the project, whereby it will undertake development works, supervise execution, and market the project in line with the approved plan.
They further agreed on the appointment of Artal Capital as the fund manager. The fund in-kind units will be held equally by Qimam Noshoz and Rakan Al-Tasan.
The MoU duration is three months from the date of signing, renewable upon written approval from all parties.
There are no related parties involved, the statement added.
The relevant financial impact will appear upon the actual commencement of the project’s execution, represented by development-related revenue in favor of Banan Real Estate.
