Business & Money | Wednesday 25 March, 2015 11:27 am |

Capitas Group International (CGI), a Jeddah-based financial specialist real estate firm jointly owned by Capitas Group and the Islamic Corporation for the Development of the Private Sector ("ICD"), and the Jeddah Development and Urban Regeneration Company (JDURC), the real estate development arm of the Jeddah Municipality, announced today their agreement regarding development of the first phase of Al Dhahyah Residential Project in Salman Bay, Jeddah.
The Al Dhahyah Residential Project is located near Salman Bay and Durrat Al Arous Resort, approximately 10 kilometers from Al Madinah Road, and 25 kilometers from King Abdulaziz International Airport. The master planned project when completed will feature 1200 buildings in total which will include educational facilities, mosques, health centers, police stations, commercial centers and infrastructure services. This second initial phase consists of 110 apartment buildings targeting the middle income market segment.
The project sponsor, JDURC, and CGI's team will work collaboratively to formulate the project development strategy. CGI will focus on developing structures and programs that leverage private sector developers' participation in the project in a meaningful and substantial way. This will be achieved by establishing private sector driven development fundamentals, such as strategic planning, optimal phasing, affordable development financing and financial engineering, to create profit margins that attract private sector developers without compromising quality and affordability for the end-user. The new structures also aim to mitigate potential financial and commercial risks for all stakeholders.
Commenting on the engagement, Engineer Ibrahim Kutubkhana, Chief Executive Officer of JDURC, said, "CGI's involvement is significant value-add to JUDRC and the project. Their ability to combine technical real estate expertise with a deep understanding of the financial and commercial issues involved in real estate development in the Kingdom is a key ingredient for the project's successful execution and its long term viability."
Naveed Siddiqui, CEO of Capitas Group International, elaborated, "We are very pleased to be working with JDURC and the Amanah on this major housing project in Jeddah. As the demand for affordable housing units continues to rise, the Ministry of Housing and the Real Estate Development Fund have systemized their programs for bolstering affordable supply and promoting mortgage finance in order to increase home ownership in the Kingdom. Through the Al Dhahyah Residential Project, JDURC and the Amanah can play an important role in achieving this overarching goal. In addition, the Al Dhahyah project complements other major urban development projects north of Jeddah such as Prince Sultan Cultural City, PPA housing projects and other development projects aimed to develop the area of North Obhur and Salman Bay.”


About CGI
CGI is a Jeddah-based specialist in real estate development and real estate finance. The company was launched in 2009 and is owned by Capitas Group, a US based management company and the Islamic Corporation for the Development of the Private Sector, the private sector arm of the Islamic Development Bank. The company's Development Management Service (DMS) manages the complete development lifecycle - from concept through design, capitalization, to construction and maintenance - for public and private sector sponsors/investors and land owners. As an owner's representative, DMS deploys a holistic approach to real estate development on behalf of its clients based on its technical expertise and in depth understanding of the business and financial aspects of real estate projects. CGI's Financial Platforms (FP) collaborates with investors to build and launch finance companies that address the funding equation on both the supply and demand sides.
About JDURC

Jeddah Development and Urban Regeneration Company (JDURC) is the private investment arm of Jeddah Municipality. The company was founded in 15/11/2006 by a royal decree No. 65/M and is owned by the government to enhance opportunities for the private sector to develop projects that add value to Jeddah and its surroundings.