The Purchase of a Commercial Property in Jeddah, Saudi Arabia
The objective of this project is to generate additional revenue for APIF to boost its profitability. The project entails the purchase of a commercial center with 8 fully rented showrooms and a rented roof area covering a length of 63 meters along Prince Sultan Street, Jeddah. With a total built-up area of 1956 m 2 over a land area of 2040 square m, the project was approved on May 6th 2020 by the APIF Management Committee for a total cost of US$12.81, including consultancy and ownership transfer costs.
It is proposed that resources from both APIF and APIF Line shall be used for this investment. It is possible that APIF may exit the building in 10 years in favor of benefiting from the capital appreciation of the asset.
By increasing APIF’s finances, the project will help the fund fulfil its mandate, the support third-sector and charitable organizations to achieve financial sustainability. Located in a very prime location in Prince Sultan Street in Jeddah and with the increasing popularity of the area, the project is promising due to its accessibility and the strong growth potential of this part of Jeddah.
RE/MAX One, the real estate agency that sourced the investment opportunity, is proposed for the management of the property.