Blominvest Saudi Arabia said it has secured a SR290 million ($77.3 million) loan in line with its plan to build 400 housing units in capital Riyadh in collaboration with leading developer Maskan Arabia.

Blominvest is the investment arm of leading Lebanese banking group Blom.

Announcing the closing of the private placement offering of 'Blominvest - Maskan Arabia for Real Estate Development Fund,' Blominvest said the loan for IBAR development was arranged through National Commercial Bank (NCB) and Alahli Bank Saudi Arabia.

The company signed a project financing contract with the NCB, IBAR development and Maskan Arabia (Project Developer) in this connection.

The funds will be used for completing the project's residential villas in three years duration.

A three-year development contract was also signed by Blominvest Saudi Arabia and Maskan Arabia Investment and Development, the developer of the new housing project in Riyadh.

Yasir Abusulayman, VP and head of Corporate Structured Unit of Alahli Bank, Hisham Alsaghyir, general director, of Ibar Development, Khaled Salhab, the Blominvest CEO and Hosam Al-Rashoudi, the Arabia Maskan CEO signed the agreement.

The signing ceremony was attended by Abdulaziz Alsaghyir, chairman of the board of directors of Abdulaziz Alsaghyir Holding, and Saad Azhari, the GM and chairman of the Blom Bank board and the vice-chairman of Blominvest Saudi Arabia.

Commenting on this deal, Abusulayman said, 'The funding comes in response to the increased demand on housing units to meet public needs, and driven by the bank's vision to support the real estate sector, which is a crucial part of the development and is second of importance in the kingdom after the oil sector.'

He pointed out that Alahli Bank was a pioneer in the field of finance and had signed many related agreements.

Azhari said the closing of the real estate fund by Blominvest in a record time, reflects trust in the real estate sector of the kingdom, which provides investors with high-return investment opportunities and builds housing units that meet the needs of the local real estate market.

He pointed out that the reputation of Blom Saudi Arabia gave an added value to the fund and the project.

'This reputation has come from the company's successive achievements in the Saudi market shortly after its establishment that has driven us to explore more investment opportunities and share returns of various projects with investors,' he added.-TradeArabia News Service