Saudi Arabia-based Arriyadh Development Company (ARDCO) has finalized a deal to acquire a commercial building in the Al Malqa district north of Riyadh.
The $18 million (SR68 million) tower is fully leased out to institutional tenants and is just slightly south of the Riyadh Avenues development project. It is strategically located near the intersection of King Fahd and King Salman roads in one of Riyadh’s fastest-growing districts.
According to the statement, “It is a commercial, revenue-generating office tower built on a 3,346m 2 land and comprises 12 office floors, ground floor, mezzanine, and two basements.”
The 10,500m2 net leasable area in addition to the advertising screen on top of the building expected to generate annual revenue of $3.8 million (SR14.3 million), as per the company.
Jehad Alkadi CEO – ARDCO
“ARDCO was established by the virtue of a Royal Decree three decades ago to realize the vision of Custodian of the Two Holy Mosques King Salman when he was the governor of Riyadh Province, which translated into unprecedent development projects in the capital. The company is determined to move forward banking on this rich legacy towards realizing the Kingdom’s Vision 2030 and the strategy that the Crown Prince had set out for Riyadh city, highlights of which had been announced in 2021. The acquisition comes as part of the board of directors’ plans to diversify the company’s real estate and investments portfolio. Given the building’s prime location, it is expected to help achieve the company’s investment targets, bolster its assets, and become one of many upcoming catalysts of its sustainable growth.”
“We are currently working on enhancing the performance of our assets under the real estate portfolio. We expect to reach our target returns in the coming years underpinned by our acquisition of assets with attractive returns and by improving the performance of our existing real estate assets. This, in turn, will enable us to enhance the average return on assets concurrently with the chances of improving the performance of the commercial building in the future through effective management of these investment assets,” the CEO further added.
Arriyadh Development Company (ARDCO)
Established in 1993, ARDCO is a public shareholding company that operates in the real estate development sector. The Company is primarily engaged in the development, rental, and sales of commercial, residential and industrial facilities, such as public parks, touristic and residential complexes, and commercial and industrial showrooms.
Furthermore, Arriyadh Development Company undertakes investment activities in commercial and residential real estate properties, as well as investing in other companies that are engaged in related activities.
