Blominvest Saudi Arabia, the investment arm of Blom Bank Group in the kingdom , has announced the liquidation of its real estate fund with a 14.44 per cent total return.

BlomInvest Saudi has managed, in no more than seven months, to finalize the liquidation of Blom Al Sharq Real Estate Fund, whose original size was SR87 million, said a company statement.

Incepted in early July of last year, Blom Al Sharq Real Estate fund was basically established for the purpose of purchasing raw land in AlMunsiah district, North-East Riyadh with a total land area of 99,106 sq m.  

The fund's objective was to obtain the necessary development licences then develop the land and divide it up into residential and commercial plots according to the regulatory requirements, said a senior official.

Developed land would then be sold to the market as a final product. In this regard, all necessary licenses were obtained, executive plans were approved, contracts with basic contactors were signed and implementation of development works was started, explained BlomInvest Saudi Arabia CEO Abdullah Al Rashoud.

"The fund board has decided to liquidate Blom Al Sharq Real Estate Fund before its due time as the entire project lands were sold in record time to investors in the real estate market with the very rewarding return of 14.44 per cent on the first investment launched by the fund," he added.

AlRashoud said the sale of the entire project land in record time to investors in the real estate market reverts to the project site advantages in terms of being close to Princess Nourah Bint Abdulrahman University and Imam Muhammad Bin Saud Islamic University and for also being near to King Khaled International airport.

"Moreover, the project is located in an area of medium population density and urban extension to the neighboring residential districts, besides to being close to Al-Thumama district which represents a recreational outlet for the city of Riyadh," he added.-TradeArabia News Service