Riyadh - Arabstoday
An agreement was signed with the National Commercial Bank (NCB) in Riyadh on Wednesday to build 400 houses at a cost of SR573 million in the north and west of the capital. On completion, the houses will be sold at prices ranging from SR1.5 million to SR3 million. The project-financing contract was signed by the National Commercial Bank, IBAR Development and Maskan Arabia (project developer). A three-year development contract was also signed by BLOMINVEST Saudi Arabia and Maskan Arabia Investment and Development. During a press conference held in Riyadh on Wednesday, Saad Azhari, vice chairman of BLOMINVEST Saudi Arabia, said BLOMINVEST has arranged a real estate loan of SR290 million for IBAR Development from NCB focused on building the project\'s residential villas within three years. Yasir Abusulayman, vice president and head of NCB’s Corporate Structured Unit, signed the agreement on behalf of the bank. General Director of IBAR Development Hisham Alsaghyir, CEO of Arabia Maskan Hosam Al-Rashoudi, and Azhari signed the agreements on behalf of their respective companies. Abusulayman said the funding comes in the wake of the increased demand for housing units to meet public needs and driven by the bank\'s vision to support the real estate sector, which is a crucial part of the development and is second in importance in the Kingdom after the oil sector. Abdulaziz Alsaghyir, investor in BLOMINVEST Saudi Arabia and chairman of IBAR Development, said: \"The real estate market provides a good environment for investment with the presence of manufacturers, marketers and consumers, an annual demand for around 200,000 housing units and an expectation of 8-10 percent growth in real estate investment in the coming period.” He added that BLOMINVEST Saudi Arabia has used various financial tools that will help in achieving the fund\'s goals. “It would achieve good returns for investors participating in the fund as well as to build real estate units ideal for consumers.\"