We supported a Saudi real estate developer in preparing the financial submission for a government-sponsored urban development project. The engagement focused on development economics, funding requirements, investor returns and the Minimum Land Value required under the RFP.
- Location
- Saudi Arabia
- Sector
- Real Estate / Urban Development
The Brief
The client was preparing a competitive bid involving a CMA-licensed closed-ended fund. The public-sector entity would contribute land in kind, while the developer would provide cash equity. The bid required an integrated financial model and a defensible Minimum Land Value.
The Challenge
The development combined multiple asset classes with different construction, sales and operating periods. The model needed to align construction expenditure, WAFI-compliant off-plan collections, leasing and exits while reflecting debt, equity and fund-level economics.
Our Approach
We built an integrated monthly model covering development cash flows, financing and investor distributions. We also incorporated the RFP requirements around Day 1 equity, WAFI, zakat treatment and the seven-year investment lock-up.
What We Delivered
- Built a monthly model covering construction, off-plan collections, leasing, asset exits and debt repayment.
- Structured funding across land contribution, senior debt, cash equity and off-plan collections.
- Derived the proposed Minimum Land Value using investor return thresholds and a target-IRR framework.
Impact
Delivered an auditable, bid-ready financial model supporting a proposed SAR 240 million Minimum Land Value and providing clear visibility into funding requirements, investor returns and land-contributor economics.