SRECO to build Phase One of Al Widyan world-class city at a cost of SR10 billion
(8/8/2018 8:07:00 AM)
Al Akaria Saudi Real Estate Company (SRECO), one of the largest real estate developers listed on the Saudi stock exchange (Tadawul), on Monday announced plans for a 7 million square meter mixed-use development called Al Widyan, in a strategic location of Riyadh.
The announcement of Al Widyan is part of a new business direction for SRECO – a Saudi developer with 40 years’ experience partially owned by the Public Investment Fund (PIF). SRECO’s renewed business plan embarks on journey to deliver a new generation of large scale, mixed-use real estate developments across the country where Saudis can enjoy the social and economic transformation brought by Vision 2030.
Al Widyan is the first private real estate project to be granted the status of a Self-Regulatory Office (SRO), which de-risks the project for investors, reduces complexity in the development phase and fast tracks permit services. Co-developers and sub-developers will be able to enjoy significantly shorter go-to-market timelines, making the project an attractive investment opportunity with fast and efficient procedures that will cut through bureaucracy and remove the need to engage with central government authorities. SRECO has also registered a company to execute the project – Al Widyan Co. which is 100% owned by SRECO.
SRECO has embraced a new business strategy leading a new generation of real estate concepts, systems and practices across Saudi Arabia, moving away from the “business as usual” approach. It provides a complete value chain solution, from conceptualization, finance and planning; to real estate development, leasing, property and portfolio management, and facilities management. This is delivered through a three-tiered structure of the business, which incorporates Real Estate Investment Management; Real Estate Development Company; and the Joint Ventures and Subsidiaries division. In addition, it has forged strategic partnerships with organizations such as POSCO, HANMI Global, leading global companies and KSA government departments. To deliver this new generation, self-contained community, SRECO has invested in a team of senior real estate professionals with experience delivering complex projects around the world.
“Al Widyan will be a new paradigm for community living in the Kingdom and will embody the spirit of new Saudi Arabia, the power of human talent to conceptualize and develop the future that we aspire to for our children, communities and nation.” said Abdulrahman Almofadhi, Chairman of the Board of Directors of SRECO.
“With Al Widyan, we are taking a new approach to real estate development. We have focused on putting people’s wellness at the centre of the conception, design and creation of this project. Al Widyan is the proof concept of the future of building, living in healthy and innovative environment, where it’s design is aligned with the world wellness lifestyle real estate principles. We are building legitimate proof of concept, locating key partners and investors and beginning construction. In line with this approach, our operations and projects are increasingly independent of public sector funding, and open to investors from all over the world. We look forward to revealing more details to the public in October.”
Al Widyan has already made a significant progress on the journey to converting the vision to reality. Construction work has already begun in 2017 with transportation and traffic impact studies completed and approved. A number of MOUs have already been signed with commercial partners, and dialogue is ongoing with a wide range of other potential Saudi and international partners. Al Widyan is committed to responsible, environmentally and socially-conscious living, it will seek a 40% reduction in energy use and a 35% reduction in water use. Al Widyan will be delivered over a phased program of development, expected to be undertaken over a 7-year timeframe with a full launch in Q4 2018.
Al Widyan’s 7 million square meter site is in the northern growth corridor of Riyadh, 15 minutes away from the international airport and 20 minutes away from downtown. Its prime location puts it within reach of a population of over 8 million people, a natural market and workforce for its diverse mix of leisure, retail, education, healthcare, office and residential uses.