Saudi real estate firm announces plans to launch Egyptian investment fund

Adeer, a subsidiary of Saudi Sumou Holding Group, revealed its intention to create a real estate investment fund in collaboration with Saudi fund manager Areeb Capital in Egypt as it aims to diversify investments in residential, commercial, and administrative properties, as stated by Adeer CEO Basel El Serafy.

The partnership has already initiated the procedural groundwork for the fund, he explained in an interview with Al Borsa. Areeb Capital will act as the financial partner responsible for managing the investments.

Currently, Adeer is in discussions with the Financial Regulatory Authority and the Egyptian Exchange (EGX) to address necessary legislative amendments to facilitate the establishment of real estate funds in the country, he added.

Adeer’s announcement comes on the heels of reports last month that a consortium, including Redcon Properties and Al Baraka Bank, announced plans for a local real estate investment fund with projected initial investments exceeding LE 1 billion, set to launch by the end of 2025.

Adeer is no stranger to the local market - in July, the company announced collaborations with local firms, including Paragon Developments for a mixed-use project in eastern Cairo and Hassan Allam Properties for another mixed-use development, with investments ranging from $100-150 million.

El Serafy previously stated that Adeer plans to invest $400 million in the Egyptian real estate sector over the next five years, reflecting the company's commitment to expanding its presence in the local market.

Looking ahead, Adeer aims to offer shares on the EGX within five years. In his recent interview, El Serafy indicated that the company intends to list some of its subsidiaries on either the main market or the small-cap Nilex in the coming 3-5 years.