First Avenue’s projects value exceeds SAR 3B: CEO

Nader Alamri, CEO of First Avenue for Real Estate Development Co.

The value of First Avenue for Real Estate Development Co.'s projects, including direct projects and through a portfolio of funds, exceeds SAR 3 billion, CEO Nader Alamri told Argaam.

The projects are distributed across Jeddah, Riyadh and Al-Kharj, he said on sidelines of SNB Capital’s Investors Day.

The company’s business model relies on its direct portfolio, along with real estate funds. First Avenue deals with a number of funds to give it the ability to expand in various fields, Alamri said.

The company is developing the Diriyah Avenue project on an area of 22,000 square meters (sqm). It consists of 76 villas, with 50% completion rate and sales scheduled to kick off in 2025. It also has 40,000 sqm in Al-Rayyan district, which will be a qualitative project, and a plot of land in Al-Kharj industrial zone that will be developed and sold.

The CEO further stressed that First Avenue's growth strategy is based on several pillars: Integration with government projects, boosting dealings with partners such as real estate funds, working on the company's direct portfolio and building strategic alliances.

The company relies on its own financing resources, including capital and retained earnings, as well as the funds it deals with and strategic partners, Alamri said, adding that it may tap the debt instruments in the coming period.

As for his expectations for the company's financial performance, the CEO said he is optimistic about the developer’s business and revenues, which will be reflected on profit for H2 2024.