Key Takeaways
- • Hamad Mohammed Bin Saedan Real Estate has signed an agreement with Bloom Investment Saudi to establish the HS Logistics Fund, a real estate vehicle targeting logistics warehouses in Riyadh, according to a bourse filing reported by TradeArabia.
- • The fund plans to acquire prime plots covering roughly 130,276 sq m and develop dry and refrigerated warehouse facilities.
- • Preliminary total project cost is SAR325 million (about $86.7 million), excluding a developer fee equal to 11.5 percent of actual development costs owed to Hamad Bin Saedan.
- • The fund has a three-year term with an option to extend by two years, and a private placement is proposed for November or December 2026, subject to Capital Market Authority approval.
Summary
Hamad Mohammed Bin Saedan Real Estate has signed an agreement with Bloom Investment Saudi to set up a real estate investment fund targeting logistics warehouses in Riyadh, according to a bourse filing reported by TradeArabia. The vehicle, named the HS Logistics Fund, is intended to acquire prime plots covering roughly 130,276 square meters in the Saudi capital and convert them into logistics warehouse projects that include both dry and refrigerated facilities.
The preliminary total cost of the projects is put at SAR325 million, or about $86.7 million. That figure excludes a developer fee owed to Hamad Bin Saedan equal to 11.5 percent of actual development costs. Other outlets covering the filing have cited a figure of approximately $87 million for the same project.
The fund is expected to run for three years, with an option to extend by two more years. A private placement is proposed for November or December 2026, pending approval from Saudi Arabia's Capital Market Authority. Under the plan, the fund would operate and market the warehouse facilities before selling them as income-generating assets during its term, with proceeds distributed to investors once the fund is liquidated.
The memorandum underpinning the deal will remain in effect for six months and can be extended through a written agreement between the two parties.
The preliminary total cost of the projects is put at SAR325 million, or about $86.7 million. That figure excludes a developer fee owed to Hamad Bin Saedan equal to 11.5 percent of actual development costs. Other outlets covering the filing have cited a figure of approximately $87 million for the same project.
The fund is expected to run for three years, with an option to extend by two more years. A private placement is proposed for November or December 2026, pending approval from Saudi Arabia's Capital Market Authority. Under the plan, the fund would operate and market the warehouse facilities before selling them as income-generating assets during its term, with proceeds distributed to investors once the fund is liquidated.
The memorandum underpinning the deal will remain in effect for six months and can be extended through a written agreement between the two parties.
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