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Knowledge Economic City (KEC) has signed a non-binding term sheet with Albilad Capital to establish a closed-ended private real estate investment fund for the first phase of its Multaqa Hospitality project in Madinah. The proposed fund will be managed by Albilad Capital, subject to regulatory approvals and final agreements. The development, valued at around SAR 1.5 billion (USD 400 million), will include two Marriott-branded hotels and branded residences. The move supports KEC's broader strategy to expand its hospitality portfolio and attract institutional investment in line with Saudi Arabia's Vision 2030.
Knowledge Economic City (KEC) has signed a non-binding term sheet with Albilad Capital to establish a closed-ended private real estate investment fund that will finance and develop the first phase of the Multaqa Hospitality project within Knowledge Economic City in Madinah. The agreement outlines the preliminary terms and conditions for launching the proposed fund, while Albilad Capital has been identified as the intended fund manager, subject to regulatory approvals and the execution of final agreements.
The proposed investment fund will finance the first phase of the Multaqa Hospitality development through a combination of equity contributions and bank financing. The first phase, known as Multaqa Hospitality Cluster 1, is part of KEC's larger Multaqa AlMadinah masterplan, which is being developed as an integrated mixed-use destination with hospitality, residential and commercial components.
The project has an estimated development value of around SAR 1.5 billion (USD 400 million), including land value. It will comprise a 288-key JW Marriott hotel, a 327-key Marriott hotel, and nearly 295 branded residential units. The development will be strategically located on King Abdulaziz Road in Madinah and connected through a pedestrian skybridge to Multaqa Mall, the Hilton Hotel Tower and the Hilton Branded Residences Tower.
KEC stated that the term sheet establishes the initial framework for creating and launching the investment fund. It will remain effective until the fund is established and definitive agreements are signed, or until specified termination events occur. These include failure to secure regulatory approvals, financing, technical requirements, construction permits or the expiry of a six-month exclusivity period without extension.
Once regulatory and contractual requirements are completed, the investment fund is expected to support the execution of the Multaqa Hospitality project and strengthen KEC's strategy of expanding its hospitality and mixed-use real estate portfolio. The company has been actively pursuing hospitality-led developments as part of its long-term growth plans for Madinah.
The latest agreement builds on KEC's recent efforts to attract institutional investment into its large-scale developments. The company has previously announced partnerships with global hospitality brands, including Marriott, Hilton, Hyatt, IHG and Radisson, across different projects within its masterplan. Earlier this year, KEC also showcased investment opportunities at the Future Hospitality Summit, highlighting more than SAR 24 billion in planned investments across its integrated developments in Madinah.
Source Reuters
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