Retal to build commercial mall with Saudi Arabia Railways Co.

Retal to build commercial mall with Saudi Arabia Railways Co.

RIYADH: Retal Urban Development Co. on Wednesday signed a shareholder’s agreement with Saudi Arabia Railways Co. to create a special purpose vehicle to establish a commercial mall, the developer said in a statement to Tadawul. The urban developer Retal is a subsidiary of Alfozan Holding based in AlKhobar, Saudi Arabia. It is recognized for creating urban projects that enhance the quality of life through progressive concepts and lasting design The total project value of completed, ongoing and upcoming projects is currently at SR9.5 billion. According to the company’s website, the company has completed 6,000 units, while nearly 7,000 are under construction. “The shared SPV plans to establish a commercial mall to develop the business and growth of Retal’s strategy,” the real estate firm said in the statement. An SPV is a subsidiary established by a parent company to isolate financial and legal risks through ring-fencing specific assets and liabilities. In accordance with the rules and regulations issued by the Capital Market Authority, there are four reasons for establishing SPVs. These are financing through alternative sources, assigning the issuance of debt instruments to SPVs specifically, providing the legal personality for the investment fund and protecting investors’ rights from bankruptcy. “We are