Retal’s affiliate inks $40mn worth facility deal with Saudi TDF

Retal’s affiliate inks $40mn worth facility deal with Saudi TDF

Saudi Arabia-based real estate development company, Retal Urban Development Company has announced that one of its affiliates, Remal Al Khobar Real Estate Company, has signed a facility agreement (Tawarruq) with the kingdom’s Tourism Development Fund (TDF).

Retal Urban Development Company, which owns a 50 percent direct stake in the company, said in a statement that the limit of the facilities has been set at $40.6 million (SR150 million) for a 15-year period.

It is guaranteed by a promissory note in addition to a corporate guarantee, said Retal in its filing to the Saudi bourse Tadawul.

The company further noted that the financing has been secured to fund the Nobu hotel, residential units, and a restaurant located in Al Khobar city.

Last month, Retal signed a sub-development agreement with the state-owned National Housing Company (NHC) in order to build 759 housing units in Al Fursan district 1, Riyadh, at an estimated cost of $229.75 million (864 million Saudi riyals). The developer stated that the project will cover a land area of 227,837 square meters and would be funded through off-plan sales and internal resources.

Earlier this year, Saudi TDF entered into a partnership with the region’s leading food delivery firm Jahez in order to improve the