Gulf Construction Online - King Salman Park to host $1.1bn mixed-use project

Saudi Focus

Masterplan of King Salman Park ... one of the mega projects launched in 2019.

King Salman Park to host $1.1bn mixed-use project

01 October 2023

The King Salman Park Foundation (KSPF) has joined hands with Saudi developer Naif Al Rajhi Investment Company for the launch of its new mixed-use real estate development project at a total investment of SR4 billion ($1.1 billion).

Spread over a 290,000-sq-m area within the park premises, the project will boast over 1,500 residential units that will include Salmani-style apartments and townhouses overlooking the park, along with 140,000 sq m of gross leasable areas for offices and retail facilities, hotels, schools, and several educational, health, sports, recreational and social facilities.

According to KSPF, the office spaces will feature central Grade A and flexible office options, fully blended within residential plots, while the hospitality offerings will cater to business tenants and park visitors. Retail space will be distributed throughout the public realm, covering the essential needs of residents, it stated.

Unveiling the project, KSPF said it has launched the King Salman Park Real Estate Development Fund that will focus on the development of the first real estate investment in plots of land in the park. This was the first public-private partnership project managed and funded entirely by the private sector.

Saudi Fransi Capital is the fund manager, while King Salman Park Investment and Real Estate Development Company is the master developer, and Naif Al-Rajhi Investment Company is the real estate developer and master lessee of the project.

The fund’s working mechanism is a model of cooperation between public and private entities, with the latter responsible for managing and financing it. The fund focuses on the development of the first real estate investment in plots of land in the park.

"This partnership represents a major milestone for us," remarked George Tanasijevich, the CEO of King Salman Park Foundation. "We are thrilled to launch this unique collaboration and excited to work alongside our partners and investors and all those involved in making our ambitious vision a reality. The creation of the fund is a sign of our ongoing commitment to creating a world-class destination that will enrich the lives of residents and visitors alike, and build a legacy of urban regeneration project for generations to come.”

King Salman Park, one of Riyadh’s four mega projects launched by Saudi King Salman in 2019, covers 16.7 sq km in a strategic location connected to several main roads, and linked to Riyadh Metro and the Riyadh Bus station network, making it easily accessible.

It is one of the world’s most ambitious and transformative urban regeneration projects, harmoniously bringing together people, nature and a city, a green oasis in the heart of Riyadh that supports the goals of Saudi Vision 2030 to create a vibrant and healthy society. The park will also support Riyadh’s global profile, contributing to making it one of the world’s most liveable cities.

According to Tanasijevich, the investment fund will undertake the development of the first real estate investment site in King Salman Park, covering more than 290,000 sq m area.

The project site is in the early stages, in District One of King Salman Park, west of the Visitor Pavilion, south of the Royal Arts Complex and east of King Abdulaziz Road, it stated.