Jabal Omar Development Company (JODC), the largest publicly-listed real estate company in Saudi Arabia, said it has signed a partnership agreement with leading global investment group ADFG.

The strategic MoU enables the duo to explore opportunities for partnerships associated with new real estate development opportunities within Makkah and throughout the kingdom.

As per the deal, the two companies will collaborate on co-development, strategic planning, design and construction, as well as operations, lease and sale strategies, and capital raising and structuring, said the JODC in its statement.

JODC’s flagship project, Jabal Omar, is a multi-use real estate mega development project in the heart of Makkah. Encompassing more than 2.5 million sq m of built-up area, the project will include a large number of high-rise towers, international hotels, residential units and commercial space, and will be delivered in phases.

In addition to Jabal Omar, JODC is looking to develop other strategic areas of Makkah close to the Grand Mosque, including the reconstruction of poorly-developed areas into mixed-use projects that comprise hotels, residential and commercial facilities as well as retail stores.
 
ADFG’s real estate platform is diversified and ranges from developing greenfield projects to investing in income producing assets. Its portfolio currently includes high-end residential, commercial, retail, hospitality and warehouses across the UK, Middle East and Eastern Europe.
 
Its key platforms include Northacre, a leading luxury real estate developer with an unrivalled 25-year track record, that has designed, developed and marketed over £2.2 billion ($3.07 million) of prime residential sales in London.

The Emirati group also manages the Etihad REIT, an Dh3.5-billion ($952 million) UAE-based Sharia Compliant Real Estate Investment Trust that invests in income producing properties across residential, commercial, logistics and mixed-use assets.

Shuaa Capital Saudi Arabia, an entity majority owned and controlled by ADFG has been active in the kingdom since 2008, where it has developed a solid track record.

Shuaa Saudi manages a number of highly successful real estate funds and has delivered several prime hospitality projects in Riyadh and Jeddah, with a third project to be handed over soon in Dammam.
 
Through its real estate platform, ADFG will offer its expertise in development management, design and development, project management and asset management. Furthermore, ADFG will support the developments through its various financing and structuring platforms.  
 
Jassim Alseddiqi, the chief executive of ADFG, said: "JODC has invaluable experience in developing complex developments in Makkah and we are delighted to be partnering with them on upcoming development projects in the kingdom."

"ADFG is already present in Saudi through Shuaa Saudi. This partnership opportunity is in line with the group's strategy to expand its footprint into the Saudi market," noted Alseddiqi.  

"As a strategic partner, ADFG, through its various platforms, will work with JODC to develop the most suited strategies for the master development and to optimize capital structure. We look forward to working with JODC and contributing to the growth of the Saudi real estate sector," he added.
 
Jabal Omar CEO Yasser Al-Sharif said: "We are excited about the potential that this partnership may create. ADFG has unparalleled experience in real estate strategy and delivery of high-end residential and hospitality projects."

"The collaboration between the two parties will be a positive step towards the kingdom’s desire to develop Makkah in line with the 2030 vision. JODC has an exciting pipeline of developments in the Makkah region and welcomes the opportunity to explore such projects with ADFG," he added.-TradeArabia News Service