Saudi state-owned property developer Raza, under its new identity, announced on Thursday the launch of operations in the Kingdom, the biggest real estate market in the GCC.
Raza is the real estate management arm of Saudi Public Pension Agency (PPA) and a subsidiary of Al Ra’idah Investment Company (RIC),
Previously known as Al Ra’idah, the company under its new identity has established an integrated real estate management platform to focus beyond property development to offer asset management, property management and commercial services.
Raza currently manages a total AUM (assets under management) of approximately SAR13 billion covering 2 million square meters (sqm) of high quality office, mixed-use and community developments Riyadh, Jeddah and Dammam.
The company is currently completing a development pipeline of 4,600 residential units in Digital City and Jeddah Obhur.
Together with existing compound assets and residential portfolio in the Diplomatic Quarter, Raza will emerge as the largest community landlord in the Kingdom by 2020.
“We launched the Raza model in order to build on our unrivalled experience with delivering large challenging projects in Saudi Arabia. Raza is designed to preserve and enhance the value of these big investments with a strategic, life cycle approach to asset management. Our model is to combine our local knowledge and relationships with global institutional standards,” said Waleed Aleisa, Chief Executive Officer of Raza.
“As we are preparing to launch a new phase of our growth journey, our road to success is built on developing local talent, technology innovation, and a renewed focus on customers. If we achieve these goals, we will deliver higher returns for our owners and reduce the cost-ratio of our operations.”
Raza also charts out a five-year growth strategy wherein placemaking and developing integrated communities act as critical growth catalysts in doubling its portfolio to nearly SAR26 billion in AUM by 2024.
The current occupancy rates across its portfolio stand at 85 per cent with some of the prominent developments such as Digital City in Riyadh close to fully leased.
As part of the growth strategy, Raza has also launched a digital transformation program to deliver improved operational efficiency and customer experience.
“In keeping with our commitment to professionalize the market, the next few months will see us introducing new-to-market concepts to Saudi Arabia that enhance integrated community experience where people want to live, work and relax. In this context technology plays a critical role and the digital transformation journey will help us introduce several industry-first propositions in the region,” Aleisa added.