ARDCO's Ambitious $932M Joint Venture with FTG Heralds New Real Estate Era in Riyadh
Deal News | Dec 17, 2024 | Zawya
Saudi’s Riyadh Development Company (ARDCO) has announced the formation of a joint venture (JV) with Turkey’s FTG Development, marking a significant advancement in the Kingdom’s real estate sector. Both ARDCO and FTG own equal stakes in this new entity, which aims to spearhead the Urban Wadi mixed-use real estate project, a vital part of Riyadh's expansive Sports Boulevard Project. The collaboration involves establishing a substantial real estate investment fund worth 3.5 billion riyals ($932 million). The Sports Boulevard Company, central to this endeavor, provides extensive land resources, with ARDCO and FTG contributing as key investors. Saudi’s Jadwa Investment Company has been appointed as the fund manager. This strategic initiative underscores the growing alliance between Saudi Arabia and Turkey, reinforcing the Kingdom’s commitment to large-scale infrastructure and real estate developments.
Sectors
- Real Estate Development
- Investment Management
- Sustainable Infrastructure
Geography
- Saudi Arabia – The project is based in Riyadh, Saudi Arabia, involving local companies and infrastructure development.
- Turkey – FTG Development, a Turkish firm, is a key partner in the joint venture, indicating cross-border collaboration.
Industry
- Real Estate Development – The focus of the joint venture and investment fund is on real estate projects, specifically targeting the Urban Wadi development in Riyadh.
- Investment Management – The newly created investment fund for the 3.5-billion-riyal project in Riyadh highlights the role of investment management in financing and overseeing large-scale projects.
- Sustainable Infrastructure – The project's integration with Riyadh's Sports Boulevard aligns with sustainability efforts in urban development and infrastructure enhancement.
Financials
- $932 million – Total value of the investment fund supporting the Urban Wadi real estate project.
- 3.5 billion riyals – The equivalent amount in Saudi riyals for the investment fund.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Riyadh Development Company (ARDCO) | Local Investor | Company | A Saudi company engaging in a joint venture with FTG for real estate development. |
| FTG Development | Foreign Investor | Company | A Turkish company partnering with ARDCO in the joint venture for real estate projects. |
| Sports Boulevard Company for Real Estate Development & Investment | Main Investor | Company | Provides land resources for the Urban Wadi project and is a significant stakeholder. |
| Jadwa Investment Company | Fund Manager | Company | Appointed as the manager of the real estate investment fund. |