SAUDI ARABIA —Hamad Mohammed Bin Saedan Real Estate Company has entered into a non-binding memorandum of understanding with BLOM Invest Saudi Arabia to establish the proposed HS Logistics Fund, creating a framework to assess the acquisition and development of approximately 130,276 square metres of land in Riyadh.
The proposed vehicle would develop the identified sites into logistics facilities comprising dry and refrigerated warehouses. Following development, the assets are intended to be operated, marketed and sold as income-generating properties during the fund term, after which the fund would be liquidated and proceeds distributed to investors. The preliminary total project cost is estimated at SAR 325 million, excluding a developer fee payable to Hamad Mohammed Bin Saedan Real Estate Company equal to 11.5% of actual development costs.
The fund is proposed to have a three-year term, with an option to extend it by a further two years. A private placement is currently contemplated for November or December 2026, subject to approval from the Saudi Capital Market Authority. The MoU itself remains effective for six months from signing and may be extended by written agreement between the parties.
The proposed development targets two segments of Riyadh's logistics property market through both dry and temperature-controlled storage capacity. Such facilities serve manufacturers, retailers, food distributors, pharmaceutical companies and third-party logistics operators, while the location in Riyadh positions the project within Saudi Arabia's principal commercial and distribution market.
Hamad Mohammed Bin Saedan Real Estate Company is a Saudi real estate developer focused on property investment and development. BLOM Invest Saudi Arabia is an investment management and financial services firm involved in structuring and managing investment products. The proposed partnership combines real estate development capabilities with fund structuring expertise, although no immediate financial impact is expected from the MoU.
For investors, the proposed fund provides a potential route to gain exposure to income-generating logistics real estate through a privately placed investment vehicle. However, the project remains subject to land acquisition, feasibility assessments, regulatory approvals and final investment arrangements, meaning the preliminary SAR 325 million cost does not yet represent a committed project investment.
