Rikaz to float shares for City Fanar development

Rikaz developers holds its second ‘Musahamat’ and floats 32 983 shares for phase two of the City Fanar project, with the shares valued at over $150 million

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By  Rhys Jones Published  June 4, 2004

Saudi Arabia's RIKAZ developers, has held its second ‘Musahamat’ for the subscription of 32 983 shares for phase two of its City Fanar project, which will be built around a 300 000 m2 manmade lagoon in Al Khobar, Saudi Arabia. The shares, worth US $153.4 million, will be subscribed within a real estate investment portfolio, in accordance with ‘Musahamat’ regulations, recently approved within a unique investment structure compliant with Islamic Sharia laws. The shares, priced at US $4642 each, are for the purchase and development of the 1.9 million m2 waterfront property. In line with specialised financial studies and with the economic feasibility of the project having been supervised, prepared and reviewed RIKAZ expects buyers to receive a 50% return on their investment over a two year period. “City Fanar presents investors with an opportunity to take part in a project that will bring a solid return on investment, whilst addressing the essential links between traditional values and contemporary needs at the human scale,” said Sheikh Khalid Al-Ghatani, president & CEO, RIKAZ. The City Fanar project uses a collective approach in its strategy, using a steering committee made up of consultants, architects and lawyers. “Our vision is to establish the City Fanar project as the commercial heart of the Eastern Province for Saudi Arabia,” said Sheikh Khalid. “This committee will devise and manage the essential elements of the project, ensuring its success by converting the aspirations of its investors into reality,” he added. RIKAZ have implemented and developed 12 projects using the Musahamat principle, with investment totalling $933 million. Through these endeavours, RIKAZ claims to have delivered an average return of investment to its shareholders of 35% annually. Located on the Al-Khobar-Dammam Corniche, the 3.4 million m2 City Fanar will offer residential, commercial and leisure facilities, including entertainment and shopping as well as marina and hotels. “The scope and mix of this project cannot be found anywhere else in Saudi Arabia. With idyllic waterfront estate houses, condominiums and apartments, City Fanar will provide the ultimate in deluxe living,”said Al Gahtani. “As a landmark, its legacy will attract people from all over, making it the preferred destination within the surrounding region,” he added. City Fanar is the first project to allocate more than 60 traditional private gardens in the Residential Area for the recreation of its inhabitants, with a total landscaping of more than 200 000 m2.

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