en.Wedoany.com Reported - Knowledge Economic City (KEC) and its subsidiary Algharraa International Real Estate Development Company have signed a letter of intent with BSF Capital to establish and manage a closed-end private real estate investment fund for the development of the Knowledge Gardens mixed-use project within Knowledge Economic City in Madinah. According to preliminary feasibility studies and financial projections, the project is expected to have a total cost of $2 billion and projected total revenue of approximately $2.7 billion.
KEC stated in a filing to the Saudi Stock Exchange that the fund will be established through a partnership between KEC, Algharraa International Real Estate Development Company, and Fourmen Investment Company, with BSF Capital serving as the proposed fund manager. Under the preliminary principles and terms of the letter of intent, the fund may attract other investors. The establishment of the fund and the execution of the project remain subject to satisfying all applicable contractual and regulatory requirements, including obtaining necessary approvals, signing final agreements, completing financing arrangements, and meeting all relevant legal and regulatory conditions.
KEC added that other investors may also participate in the fund, depending on final terms and applicable regulatory approvals. Knowledge Gardens is considered one of the largest mixed-use development projects within Knowledge Economic City, located in the southeastern part of KEC, west of Prince Naif Road, south of Sheikh Ibn Baz Road, adjacent to the Haramain High-Speed Railway Station in Madinah.
The project is part of KEC's vision to develop integrated, sustainable urban communities through modern urban planning, green spaces, advanced infrastructure, and a balanced mix of residential, commercial, and hospitality offerings. The project plans a net land area of 332,054 square meters across 4 mixed-use development zones, with a total built-up area of approximately 897,542 square meters and a total gross floor area (including parking) of approximately 1,274,419 square meters. The master plan includes 4,198 residential units, 183 serviced apartments, a hotel with 450 rooms, and 80,000 square meters of commercial and office space, in addition to community centers, mosques, nurseries, and an interconnected network of parks and landscaped open spaces exceeding 52,000 square meters.
