Global real estate expert Jones Lang LaSalle (JLL) has reached an agreement with Saudi Arabia's sovereign wealth fund PIF to acquire a significant stake in its company - Saudi Facility Management Company (FMTECH). 

Launched by PIF in 2023, FMTECH is a national integrated facilities management company, serving the Saudi wealth fund's portfolio companies as well as public and private sector clients across Saudi Arabia. 

The investment allows JLL to expand its service capabilities in the Saudi market, while building on the existing relationship with PIF.

According to PIF, FMTech will benefit from JLL's global network and operational track record to create new commercial opportunities and localize knowledge and technologies. 

FMTech will integrate JLL’s advanced digital facility management platforms and global operating systems which will enable the company to significantly elevate service quality, efficiency, and transparency across its entire delivery model, driving long-term value creation for clients.

Head of the Local Real Estate Investment at PIF Saad Alkroud said: "Facilities management is a key component of the real estate and infrastructure sector, and of PIF’s local real estate strategy, which drives economic transformation and diversification, advances urban innovation and enhances quality of life."

"JLL’s investment will further accelerate FMTECH’s progress and create new opportunities for growth that will benefit the sector," he stated.

Chief executive officer of Real Estate Management Services at JLL Neil Murray said: "With this investment, we’re combining JLL’s best-in-class operational and technological facilities management capabilities with FMTECH’s local market knowledge, to deliver exceptional service to clients in the rapidly growing Saudi market."

According to PIF, the transaction aligns with its strategy to increase private sector investments from domestic and global investors into its companies to help unlock their full potential, while delivering on its unique mandate to drive the country’s economic transformation and deliver sustainable returns.

The deal is expected to close subject to customary closing conditions following which, PIF will maintain a majority stake in FMTECH.-TradeArabia News Service