A group composed of 17 prominent Saudi investors in the real estate sector is planning to invest SR470 million ($125.3 million) in the establishment of the first company for developing the unplanned neighborhoods in Jeddah Province. The company's total capital will hit SR 1 billion ($266.6 million).
The new company will give the current owners of the assets in these neighborhoods three choices: cash payment for those who want to sell their assets, purchasing shares in the company by the value of the asset, or supplying alternative dwelling by the company for the period of the project's accomplishment for those who would like to return to their houses.
The investors participated in a meeting which agreed upon the need to appoint a committee for evaluating the assets composed of the six members of
the relevant governmental bodies, 3 of the investors and 2 members of the local banks.
