Osool & Bakheet launches SAR 713m real estate private equity fund

OSOOL AND BAKHEET
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Riyadh – Mubasher: Osool & Bakheet Investment Company has officially announced the launch and commencement of operations for the Osool & Bakheet Ashad Al Hamra Hotel Development Fund.

The closed-ended private real estate investment fund carries a target investment size of SAR 713 million including debt financing, according to a bourse filing.

Osool & Bakheet noted that it is designed to capitalize on the expanding opportunities within the tourism and hospitality infrastructure of the Kingdom of Saudi Arabia.

In its capacity as the fund manager, Osool & Bakheet confirmed that the primary strategic objective of the fund is the acquisition of a land plot located in the city of Khobar.

Following the takeover, the fund will oversee the structural development of the site into a luxury hotel project. This initiative aligns with the broader growth trends currently observed in the Saudi Arabian tourism sector, which continues to see significant investment as part of national economic diversification efforts.

Meanwhile, the fund is scheduled to operate for an initial duration of five years. However, the fund manager has included provisions for potential extensions, allowing for two additional periods of one year each, depending on the operational requirements and the progress of the development.

Regarding the financial implications for the firm, Osool & Bakheet expects the fund’s operations to yield a positive material impact on its financial statements starting in the 2026 fiscal year. The company projects that the revenue generated from this fund will exceed 5% of its total revenues recorded in 2025.

This anticipated financial boost is attributed to the collection of arrangement fees during 2026, alongside recurring management fees that will be collected throughout the lifespan of the fund.

The launch of the Ashad Al Hamra Hotel Development Fund represents a targeted move into the Eastern Province's hospitality market. By focusing on a luxury development in Khobar, the fund seeks to meet the rising demand for high-end accommodation in one of the Kingdom's key urban and commercial hubs.

Source: Mubasher Source: {{details.article.source}}