King & Spalding has advised Saudi Fransi Capital on the establishment of the King Salman Park Real Estate Development Fund. This innovative fund is set to spearhead the development of a mixed-use project within the sprawling King Salman Park in Riyadh, Saudi Arabia.
The fund is slated to develop the inaugural real estate investment site within King Salman Park, encompassing a vast area exceeding 290,000 square meters. With a staggering total valuation of around USD 1.1 billion (SAR 4 billion), this monumental project will encompass over 1,500 residential units, featuring a mix of apartments and townhouses that offer scenic views of the park. In addition, it will encompass 140,000 square meters of gross leasable areas, accommodating offices, retail spaces, hotels, schools, and an array of educational, health, sports, recreational, and social facilities.
King Salman Park stands as one of Riyadh’s ambitious giga projects, first unveiled on March 19, 2019. It aims to become the largest urban park globally, increasing Riyadh’s per capita green space by a staggering 16-fold and boasting a plantation of over 7.5 million trees throughout the city.
Notably, this groundbreaking fund operates under the regulatory purview of the Saudi Arabian Capital Market Authority (CMA) and represents the maiden public-private partnership fund launched within the CMA’s regulatory framework, incorporating an inventive financial and operational structure. The fund’s management falls under the purview of Saudi Fransi Capital, a prominent financial institution in Saudi Arabia and a subsidiary of Banque Saudi Fransi. King & Spalding’s counsel on this transformative project underscores the firm’s commitment to innovative investment strategies in the region.
The King & Spalding team included Managing Partner – Middle East Offices Nabil Issa (pictured), partner James Stull, partner, Seconded from King & Spalding Zaid Al–Farisi, counsel Oliver Swerdlow, senior associate Sayf Shuqair and Husam Alhmary.
King Salman Park Company for Investment and Real Estate Development acted as master developer, and Naif Al Rajhi Investment Company acted as real estate developer of the project.