Features Of Investing In The Land
In the shadow of the huge jump KSA is going through and the signs show that the Saudi market is going to break the 266$ billion barrier. This is due to many reasons including human growth and the new regulations by the KSA government by making the Umrah season
last for 10 months; increasing the number of visitors in comparison to previous years.
Research also shows that the number of visitors for Umrah is likely to reach 10 million, resulting in more demand for hotels &
residential apartments.
The investor/s in this proposed land has the ability to develop a residential / hotel and re-sell a whole tower or part of it, he/she also
has the ability to allow it to be rent out to travel operators in accordance with the hotelier management of the tower.
And based upon the generous returns expected from this investment, we are pleased to offer you an investment opportunity by
purchasing this blessed land in Makkah Al Mukarramah.
Investor Returns
Marketing studies for investing in the land conducted with absolute positive reserved assumption shows:
1) 42% annual returns on investment if the developed hotel tower is then marketed and sold based on the timesharing system.
2) 29% returns on investment in case of selling based on the floor system.
3) 32% returns on investment in case of selling according to the units system.
4) 15% annual returns on investment if the tower is operated as a hotel at large.
Proposed Structure of Investment
- Having secured the land, design consultant, architecture, construction contractor, interior designer, etc will be appointed. And approvals for building the project will be obtained from relevant authorities.
- A Saudi SPV will be created and will enter into a long-term contract with Investor/s for ensuring full occupancy during the Haj season. It will also seek to enter a long-term contracts with other entities that may assure occupancy during the Umrah seasons
in the coming years.
- A Saudi based company, LUDAIN from Saudi Binladin Group and it’s owner Mr. Adel Binladin is a party, who is willing to
assist and provide the services above and the followings:
1) financial advisory
2) capital raising services for the project
3) custodial services for ownership of the project land in view of the prohibition on ownership of property by foreigners.
4) A two tower / 200 rooms hotel / residential can be designed and built on the freehold land. The design of the tower will include:
a) Furnished accommodations
b) Hotel / tower lobby
c) Restaurant
d) Shoplots
e) Mussolah (prayer area)
f) Underground parking (if permissible)
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