Dar AlArkan obtains PIF approval on US$1.06bn loan (8636P)

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RNS Number : 8636P

Dar Al-Arkan International Sukuk II

10 October 2011

Dar Al-Arkan welcomes the Saudi Government's SAR 4 Billion financing and support for the company's Qasr Khozam project.

Dar Al-Arkan Real-Estate Development Company, developer partner of Khozam Development Real Estate Company(51% ownership) announced on October 8th, 2011, that the Saudi Public Investment Fund (PIF) has granted approval of a SAR 4 billion (US$1.06 billion) financing facility for the Company's JV Qasr Khozam Development project.

As per the project's business plan, the initial total finance required for the project is SAR 6 billion. Based on funding study submitted by Khozam Development Real-Estate Company to PIF, the project approach PIF participation of SAR 4 billion, and the remaining participation of the funding will be arranged through commercial banks and other entities. In light of the aforementioned, PIF issued their approval to participate in financing Qasr Khozam Development project.

This funding will contribute to the project by accelerating the development operations and pushing ahead to the next phase of sending evacuation notifications, and the compensation and transfer of ownership of the properties located in the project area. This step will be followed by demolition works and the infrastructure development in phases. This approval was preceded by the processing of administrative; legal formalities; preparation of project technical studies; obtaining of government approvals for the properties documentation, evaluation and compensation list; approval of the master plan by government authorities and obtaining approval for the infrastructure design.

Mr. Yousef Al Shelash, Chairman of Dar Al Arkan Real Estate Development Company stated "We extend our deep gratitude to the Custodian of the Two Holy Mosques and the Crown Prince, as well as the Ministry of Finance and PIF for their support and contribution to the financing of Qasr Khozam Development project as one of the largest development projects in the kingdom. Indeed it is a strategic step in the way to secure additional funds from financial institutions. It also shows the support and commitment of the government agencies, to the success of development projects in general and this project in particular. Qasr Khozam Development project, demonstrates a real partnership between the public and private sectors in rejuvenating the old downtown district of Jeddah"

Qasr Khozam Development project is located in the south east of Jeddah's central downtown district, covering an area of approximately 4 million square meters. This area includes historical, economic and cultural landmarks. The project objective is to demolish all scattered properties on the project area and develop the land basic infrastructure according to world-class highest quality standards which is expected to develop the area economically, culturally and socially.

This information is provided by RNS

The company news service from the London Stock Exchange

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