Saudi Blominvest, a part of Lebanese banking group Blom, has signed up leading developer Maskan Arabia for the construction of the first three phases of its upcoming SR475 million ($127 million) residential project in Riyadh.

These phases include digging and preparing the land of the project, construction and electro-mechanic works, as well as the finishing works.

A total of 292 residential units will be developed in northern Riyadh by Blominvest through a major fund set up in collaboration with leading developer Maskan Arabia.

Blominvest-Maskan Arabia Real Estate Development Fund is considered one of the most prominent privately-offered shariaa compliant real estate investment funds.

The fund was launched by Blominvest Saudi Arabia in December last year with a capital of SR283 million and was shortly closed after a feeder fund of NCB Capital subscribed for the majority of the shares in the fund’s capital.

This was followed by another success by Blominvest in securing a SR240 million with the National Bank, whereby the bank loan covered all the costs of developing and building the villa project, comprised of 292 housing units.

Commenting on the deal, Abdullah Al-Rashoud said, "Signing these contracts comes as a coronation of the co-operation between Blominvest and the fund developer Maskan Arabia. The project will see 292 villas come up in the Yasmeen neighborhood in Riyadh."

"With the awarding of construction contracts, we are making a significant achievement in the project. We are confident that Maskan Arabia will employ the highest quality standards in completing these major phases and meeting the planned deadlines," he added.

Hossam Al Rashoudi said the strategy of Maskan Arabia is to build smaller projects of villas and apartments that have guaranteed results and are easy to manage.

On the agreement, he said this was a vital step to start the implementation of the entire project and help complete it within the specified three-year period.

"This step coincides with the achievements made by the company so far, with respect to the purchase of the project lands, the assigning of the consulting firm that will carry out the design works, and completing the rehabilitation of the main contractors of the project, which has quality features making it the leading housing project in terms of location, quality of and durability of construction, and elegant design," he observed.

Hossam Al Rashoudi said a total of 30 different villa designs were prepared - each representing a transition in quality and elegant architecture and reflecting the beauty of Andalusian, Ottoman and Moroccan Islamic designs - thus turning the project into a unique landscape adorning a civilized and astonishing metropolitan capital.

"The project has quality advantages, making it the leading housing project in terms of location, quality and durable construction and elegant design," he added.-TradeArabia News Service