Saudi-based Rafal Real Estate Development has announced that its joint venture with Citic Construction, a subsidiary of China’s state-owned conglomerate Citic group, has reached an agreement with National Housing Company for the construction of an industrial complex in Riyadh.
The complex offers fully integrated supply chains – ranging from advanced green precast to modular housing solutions in addition to related industries spanning electro-mechanical installation and other finishing materials – that are essential for the construction of scalable social housing projects within the shortest time schedule.
As per the deal, Saudi National Housing Company will extend its support to the JV by providing a strategic location for the facilities serving the newly-planned masterplans in the north-east of Riyadh. It will also provide a land bank serving 20,000 homes for the first phase of the project.
The estimated capex of the complex and construction of the houses will be over SR12 billion ($3.2 billion), said a top official.
“The joint venture is aimed at boosting production to serve the Saudi market with a fully integrated solution that would achieve higher scalability, environmental sustainability, and cost efficiency,” noted Rafal CEO Elias Abou Samra.
Construction works are expected to begin in Q3 and the production and operations are targeted for January 2024.