The Red Sea project has obtained capital for the first phase; moving to operations: CFO
RIYADH: Red Sea Development Co., the developer of one of the world’s largest sustainable tourism sites, has secured all necessary funds for the first phase of the project and is now accelerating work on the project, its chief financial officer said .
The company, known as TRSDC, which until now focused on the execution and delivery of three hotels, has shifted gears and moved into operations. It has already hired the first general manager of the three hotels and is identifying senior managers for the other two hotels, Jay Rosen told Arab News.
“We are at the start of the pre-opening process as we ramp up our operations over the next 12 months,” the executive said while adding that they remain on schedule to welcome the first guests here. next year.
• The Red Sea Project is a 28,000 square kilometer sustainable tourist resort comprising more than 90 unspoiled islands along the west coast of Saudi Arabia.
• By 2030, it will have 50 hotels with 8,000 rooms and 1,300 residences.
It has secured all the necessary equity capital from the Public Investment Fund to partner with nine international hotel brands that will operate resorts in the early development phase of the Red Sea project.
“We made a few more signings. We haven’t announced them yet. And there are others that we are finishing as well,” Rosen said. Last year, the company integrated renowned brands such as Marriott International, Fairmont Hotel & Resorts, Accor Group, Hyatt Hotels, IHG Hotels & Resorts and Jumeirah Hotels & Resorts.
The project is a 28,000 square kilometer sustainable tourist resort comprising more than 90 unspoiled islands along the western coast of Saudi Arabia. By 2030, it will include 50 hotels with 8,000 rooms and 1,300 residential properties.
TRSDC has seen a lot of interest from Saudi banks to provide green finance for its development. Rosen said the company plans to draw on both equity and debt for its other AMAALA development, an ultra-luxury site north of TRSDC’s main project.
In line with its commitment to creating opportunities for residents in the Vision 2030 transformation plan, the company is exploring avenues for Saudi citizens and investors to invest in the advanced stages of project execution.
“At some point we will make opportunities available to the retail investor through REITs. They can take many forms, either through a fund or through a public offering” , said the executive.
Early last year, the company received a capital injection of a $3.76 billion loan to finance the first phase of the project from Saudi National Bank, Riyadh Bank, Banque Saudi Fransi and the Saudi British Bank.
Energy requirements for the development will be generated on a sustainable and fully dispatchable basis by a 340 MW solar photovoltaic power plant with associated storage system using a captive use battery energy storage plant.
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