The Situation
A major mixed-use development with a Built-Up Area (BUA) of approximately 430,000 sqm on a land area of approximately 100,000 sqm in Riyadh, with a development value exceeding SAR 3.5 billion, required a financing and investment structure capable of supporting a large, complex development while aligning the interests of development stakeholders, financial institutions, developers and operators.
The Challenge
- Develop an integrated development and investment strategy.
- Assess financial feasibility, capital requirements and development phasing.
- Determine an appropriate investment and funding structure.
- Bring institutional funding participation into the development.
- Develop relationships with developers and potential joint-venture partners.
- Address the hospitality component through engagement with hotel operators and suitable commercial arrangements.
- Align long-term financial returns with the underlying development strategy.
The Approach
- Structured the funding and development strategy around a real estate development fund model in collaboration with a local bank.
- Integrated development strategy, financial modelling and feasibility into the capital-structuring process.
- Reviewed development phasing and associated funding requirements.
- Built engagement with developers and potential joint-venture partners.
- Developed relationships with hotel operators for the hospitality components.
- Aligned the investment vehicle, development strategy and underlying real estate business plan.
The Strategic Value / Impact
Rather than treating financing as a standalone debt exercise, the approach connected Development Vision → Feasibility → Capital Requirement → Fund Structure → Bank → Developers → Operators → Execution. This created a framework through which institutional capital, development expertise and operating capability could be brought together around a single development strategy.
"Financing a major development is not simply about raising capital. The funding vehicle, development strategy, partners and operators must be structured around the same investment thesis."
Related StrataCap Services
Development Business Case Review · Capital & Funding Strategy Review · Real Estate Fund Strategy Review · Development Financial Review · Partnership / JV Decision Support · Hospitality Commercial Review