The Public Pension Agency and Riyad Capital signed a strategic agreement which aims to develop a mixed-use real estate project named (Capital Gate) in Al-Sahafa district, north of Riyadh city, mainly on King Fahad Road, Imam Saud Bin Faisal Road, and Olya Street.
The agreement targets to establish a real estate development fund, which will develop the land of the Public Pension Agency and create an integrated mixed-use development with multiple uses including office, retail and entertainment areas, with a total leasable area of approximately 100,000 square meter. Capital Gate project benefits from the current infrastructure adjacent to the proposed developed majorly represented by Riyadh Metro, as well as mega projects, including King Abdullah Financial District, The Avenues Mall, and several headquarters for national companies and banks.
His Excellency, the Governor of the Public Pension Agency, Mohammed bin Talal Al Nahass expressed that such an agreement is part of the 2022 strategic plan of the PPA that intent to enhance the investment strategy by diversifying investments and collaborating with the private sector which will optimize returns on the pension funds managed by the PPA.
The governor stated that the PPA recently worked on improving the investment strategy through restructuring Al Raidah Investment Company and attracting talents in various investment fields, reallocating investments, and improving governance structure, which led to a positive performance and increase in revenues.
In addition, The CEO of Riyad Capital, Mr. Sabty bin Sulaiman Al Sabty, expressed his happiness for signing such an agreement with the Public Pension Agency – one of the most important institutional investors in the Kingdom of Saudi Arabia. The partnership reflects the importance of cooperation between private and public sectors, aiming to provide the highest standards for the real estate investment environment in the Kingdom of Saudi Arabia.