| Element List | Explanation |
|---|---|
| Introduction | The Knowledge Economic City (the "Company") announces the signing of a non-binding Term Sheet with Al Bilad Capital to appoint it as the fund manager for the establishment, offering, and management of a closed-ended private real estate investment fund to finance the development of Multaqa Hospitality Cluster 1 within the Company's Multaqa Almadinah project, subject to obtaining all required regulatory approvals and satisfying the conditions set out in the Term Sheet. |
| Memorandum Signing Date | 2026-07-12 Corresponding to 1448-01-27 |
| Counterparty | Albilad Capital |
| Memorandum Subject | The purpose of this Term Sheet is to set out the preliminary terms and conditions for the establishment and launch of a real estate investment fund to finance and develop the first phase of the Multaqa Hospitality Project within Knowledge Economic City, and to provide the framework for progressing the necessary steps toward the establishment and launch of the Fund. |
| Memorandum Duration | The Term Sheet will remain in force until the occurrence of any of the agreed termination events, including the successful establishment of the Fund and execution of the definitive agreements, or the failure to satisfy the required regulatory, financing, technical, or approval conditions necessary for establishing and implementing the Fund, the expiry of the agreed 6 month exclusivity period without extension or obtaining the project construction permit. |
| Related Parties | No related parties. |
| Financial Impact | The Company expects that the establishment of the investment fund, upon completion of all regulatory and contractual requirements, will contribute to advancing the development of the project in line with the Company's development strategy and support the implementation of one of the hospitality components within the Multaqa AlMadinah masterplan. |
| Additional Information | The Multaqa Hospitality Cluster 1 project comprises the development of a JW Marriott Hotel with approximately 288 hotel keys, a Marriott Hotel with approximately 327 hotel keys, and approximately 295 branded residential units (Branded Residences), with an estimated total development value of approximately SAR 1.5 billion, including the land value. The project is located within Multaqa Almadinah on King Abdulaziz Road and is directly connected to Multaqa Mall on its western side through a dedicated pedestrian skybridge. The skybridge also connects the project to the Hilton Hotel Tower and the Hilton Branded Residences Tower, integrating the development with the surrounding hospitality, residential, retail, tourism, and entertainment components of the masterplan. The proposed investment fund is intended to provide an appropriate investment vehicle for financing and developing the project through equity contributions and bank financing, in accordance with the final fund structure and the applicable laws and regulations. Through this initiative, the Company aims to broaden the participation of financial institutions in supporting its development strategy, particularly in the hospitality sector and other strategic asset classes, while promoting the sustainable development and long-term quality of its integrated mixed-use projects. |
The Knowledge Economic City Announces the Signing a Term Sheet with Albilad Capital
AI Summary
- Knowledge Economic City signed a non-binding Term Sheet with Al Bilad Capital to establish a private real estate investment fund to finance and develop the Multaqa Hospitality Cluster 1 project.
- The project has an estimated total development value of SAR 1.5 billion and includes a JW Marriott Hotel (288 keys), a Marriott Hotel (327 keys), and 295 branded residential units.
- The proposed fund will serve as the investment vehicle to provide financing through equity contributions and bank loans, subject to regulatory approvals.
- The agreement includes a six-month exclusivity period to satisfy necessary conditions, including obtaining project construction permits and final fund structuring.
