Riyadh – Mubasher: Banan Real Estate Company has officially entered into a strategic agreement with Afaq Al Qimma Al Rabiaa Al Mutatawera Company to spearhead the development and marketing of a new hotel project in Riyadh.
The contract, valued at an estimated SAR 54.90 million, involves the construction of a hospitality facility in the Al Rahmaniya neighborhood, according to a bourse filing.
This partnership involves the fourth Artal Real Estate Fund, which is managed by Artal Financial, and marks a significant expansion of Banan’s operational footprint in the Kingdom’s hospitality sector.
The agreement, signed on 2 July 2026, designates Banan Real Estate as both the primary developer and the marketing agent for the upcoming hotel building.
The project is situated on a land area spanning 3,284 square meters in the Al Rahmaniya district. Ownership of the site remains with the fourth Artal Real Estate Fund, an investment vehicle managed by Artal Financial.
The counterparty in this transaction, Afaq Al Qimma Al Rabiaa Al Mutatawera Company, is a specialized entity established within Saudi Arabia for the specific purpose of holding and managing real estate assets belonging to the fourth Artal Real Estate Development Fund. This fund is structured as a closed-ended real estate investment fund, focusing on high-value development opportunities within the local market.
Under the terms of the contract, the development timeline is set for a duration of two years. Banan Real Estate expects the financial impact of this project to manifest in its financial statements starting from the second half (H2) of 2026.
The company anticipates that the management and marketing fees associated with the development will contribute positively to its overall revenue streams and net results over the contract period.
The disclosure also highlights significant related-party interests involved in the transaction. Qimam Nashaz Real Estate Development Company, which is a subsidiary of Banan Real Estate, holds a 38.20% ownership stake in the fourth Artal Real Estate Development Fund.
Furthermore, Banan Real Estate Company maintains a direct ownership interest of 10.20% in the fund. These existing equity positions underscore the integrated nature of the partnership between the developer and the investment fund.
The project aligns with the broader objectives of the fourth Artal Real Estate Fund to capitalize on the growing demand for hospitality infrastructure in Riyadh.
By leveraging Banan’s expertise in development and marketing, the fund aims to maximize the value of its asset in the Al Rahmaniya neighborhood, a key residential and commercial hub in the capital.
In June, Banan Real Estate formed its investment committee, following a resolution passed by the company’s Board of Directors.
