Against the backdrop of unprecedented and coordinated policy measures across the globe to ensure that the world economy is again recovering from the worst economic downturn in the postwar era, investment drive in Saudi Arabia has gained additional momentum. In particular, investment appetite in the Knowledge Economic City - the third of four Economic Cities being developed in Saudi Arabia - has increased, as demonstrated by the tremendous outcome of the recent “Business Opportunities Forum” hosted by KEC on its project offerings. Tahir Bawazir, CEO of KEC, announced at the forum that contract agreements worth SR1.5 billion will be signed early this year on construction of infrastructure and related facilities for the first phase of the KEC project. The contracts would cover hospitality industry, commercial/retail malls, business parks and educational facilities for information technology, health education, management tourism courses, among others. KEC continuously receives a lot of pre-qualification bidders for a host of projects at stake, he added. At the moment, a lot of investment opportunities in KEC await potential investors, said Jones Lang LaSalle - which has been the real estate advisor to KEC for the past 3 years - in its presentation at the forum. Being instrumental in sizing, phasing and creating the development strategy for the various phases of KEC development, Jones Lang LaSalle said investors could take advantage of KEC's “attractive commercial terms” to enhance their expected returns. It noted that investors have the opportunity to acquire land for development in Phase 1 of KEC. It outlined KEC's unique selling proposition such as high capital appreciation potential, high quality infrastructure offering, inherent demand drivers for residential and commercial assets, and opportunity to acquire land in the only economic city proximate to an existing urban center in the Kingdom. In retail and hospitality, for instance, KEC offers investors an opportunity to co-invest in a mixed-use development containing a quality retail and hospitality asset which support the entire residential and commercial development in Phase 1, Jones Lang LaSalle said. The asset will be developed on a 40,000 sq m land and will have a total built up area of 71,000 sq m. Diversified revenue arises in hospitality, Jones Lang LaSalle pointed out. The residential villa community part of Phase 1 would be the only integrated residential villa community in Madina once finished, it added. The 3-bedroom 320 villas will form as part of an integrated development including retail, school and religious facilities. The apartment community part of Phase 1, Jones Lang LaSalle further said, will have more than 200 apartment units of different sizes. After completion, it will be the only integrated mid-rise residential apartment community in Madina and will also become a part of an integrated development which includes retail, school and religious facilities.
