Hamad Mohammed Bin Saedan Real Estate has announced that it has signed a deal with Bloom Investment Saudi to establish a real estate investment fund focused on logistics warehouses in Riyadh. 

The new 'HS Logistics Fund' aims to acquire prime plots spanning about 130,276 sq m in the Saudi capital and develop it into a logistics warehouse projects comprising dry and refrigerated warehouses, said Hamad Bin Saedan in its bourse filing.

The project's preliminary total cost is estimated at SAR325 million ($86.7 million), excluding a developer fee payable to Hamad Bin Saedan equivalent to 11.5% of actual development costs.

The fund is expected to have a three-year term, with the possibility of a two-year extension. A private placement is proposed for November or December 2026, subject to approval from Saudi Arabia's Capital Market Authority.

The fund aims to operate and market the warehouse facilities before selling them as income-generating assets during its term. Proceeds will be distributed to investors upon liquidation of the fund, it stated.

The memorandum will remain in effect for six months and may be extended by written agreement between the parties, it added.