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SAUDI ARABIA - Real Estate & Construction

Nader Hassan Alamri

CEO, First Avenue Real Estate Development, Saudi Arabia

Bio

Nader Alamri is CEO and Founder of First Avenue For Real Estate Development. This is a boutique development company with more than SAR1.5 billion of projects under management. He began his career at the investment team with GOSI (The Saudi Pension Fund) in 2007 and then occupied senior investment positions at Hassana Investment Company, Muhaidib Group, and Anfas Medical Care. Prior to founding First Avenue, Nader served as Chief Investment and Operations Officer at the General Authority For Endowments, where he was tasked with establishing Awqaf Investment Company. Internationally, he has served on several advisory boards for real estate funds. Locally, he served as a board member for a number of companies and funds.

"Establishing and nurturing trust with investors is paramount in our investment philosophy."
TBY talks to Nader Hassan Alamri
, CEO of First Avenue Real Estate Development, Saudi Arabia, about enhancing the local real estate sector, the firm’s flagship projects, and goals for 2024.
Could you elaborate on the company’s positioning and how it aims to enhance the local real estate and construction sector?

Established in 2017, First Avenue Real Estate Development is a closed joint stock company strategically positioned to capitalize on opportunities within the dynamic real estate markets of Riyadh and Jeddah. Commencing with a modest paid-up capital of USD150,000, our operations have experienced substantial growth, currently boasting a scale of USD50 million paid-up capital, achieved through astute investments and strategic partnerships. Our expansion was fueled by collaboration with investors and partners who discern the potential in rewarding opportunities. Adopting a multifaceted approach to growth, we not only utilize our own capital and banking facilities but also tap into investment and real estate funds, ensuring scalability. Our unique methodology involves close collaboration with local fund managers, enabling the diversification of our project portfolio and securing funds financing. This strategic approach has resulted in the development of commercial and residential projects totaling SAR1.5 billion across prime locations in Jeddah and Riyadh. We specifically focus on small to medium-sized projects, capitalizing on niche markets. Despite the challenges posed by the pandemic, the real estate market has demonstrated remarkable resilience, attracting increasing investor interest and a growing influx of capital. In Riyadh, residential properties, driven by heightened demand due to population migration, have emerged as the most lucrative segment. Over the past five years, we have witnessed increased demand leading to higher prices, prompting more developers to enter the market and expand the supply of products. This surge in development has generated a stabilization of prices and a growing need for office space, as organizations hire more personnel. Consequently, there is a rising demand for office accommodation, and the hospitality sector is experiencing increased demand. Government initiatives, such as tax and zakat regulations, have catalyzed the transformation of the real estate sector from individual businesses to corporate entities, emphasizing the need for professional standards in dealings with government agencies. To thrive in this evolving landscape, companies must establish robust finance departments and adopt corporate practices. Furthermore, certain initiatives have compelled individuals to formalize their businesses and operate as companies.

How does First Avenue Real Estate Development earn the trust of investors and partners while carving out a niche in the market?

Establishing and nurturing trust with investors is paramount within our investment philosophy. In our pursuit of building and maintaining investor confidence, we place great emphasis on demonstrating unwavering commitment, dedication, and adherence to honesty and integrity. However, it is imperative to acknowledge that while instilling trust is vital, profitability remains a key focal point in our endeavors. In the realm of real assets, particularly within the real estate domain, transitioning from conceptualization on paper to tangible progress in reality is essential to mitigate market risks effectively. Our investment strategy places a premium on profit-sharing arrangements, aligning our interests closely with those of our partners. Importantly, we only levy charges upon the successful delivery of projects, ensuring a fair and equitable distribution of gains. As a business that is founder-managed, our organizational ethos revolves around team empowerment and accountability. Our recent transformation into a closed joint stock company serves as a testament to our unwavering commitment to long-term sustainability and robust governance practices. Notably, we channel our profits back into the business for expansion and infrastructure development, exemplified by our dedication to talent acquisition. In a pioneering move within the local real estate sector, we have allocated 10% of the company stock to our employees, emphasizing our commitment to fostering a collaborative and inclusive working environment. This strategic approach positions us as significant contenders both regionally and internationally, aiming to become national champions in the real estate arena. By leveraging our assets judiciously, we not only attract but also retain top-tier talent in the fiercely competitive market, thereby fortifying our standing as industry leaders.

What are the current flagship projects and active initiatives on First Avenue Real Estate Development’s agenda?

One of our standout endeavors unfolds in the prestigious Diriyah neighborhood in Riyadh, where we acquired 22,000sqm of private land from the market. This iconic project presents a distinctive challenge, and through collaboration with the Diriyah Gate Authority, we have envisioned an exceptional residential compound divided into 6 zones. The project will feature 76 townhouses in total equipped with ground-level parking, a driver’s room, and a communal 400sqm area for each zone. Moreover, the project encompasses 45 two-bedroom modern apartments to cater for the growing demand for residence in Diriyah. Additionally, La Perle Residence project has 28 two-story apartments, where the ground level features 130 SQM of open area, with private individual elevator for each apartment, catering specifically to ultra-high-net-worth individuals seeking spacious and luxurious accommodations. This upscale development is poised to launch later in 2024 in the prestigious Nakheel area, addressing an underserved market segment. In addition to our residential endeavors, our focus extends to retail and commercial projects. Despite the challenges posed by the pandemic, we seized the opportunity to secure two prime locations in Jeddah, which has significant untapped development potential. As our projects near completion, we are poised to bridge the noticeable gap between supply and demand in Jeddah. Our current project, now 90% complete, reflects our commitment to value addition and meeting market demands. For instance, we have integrated a two 5-floor office towers and ground-floor retail and fine dining to elevate the overall tenant experience. Furthermore, our lifestyle center in Qairawan, Riyadh, includes a full basement with exhaustive parking options, positioning it as a premier destination for both employees and visitors. Such initiatives underscore our dedication to providing innovative solutions and surpassing market expectations.

What does 2024 hold for the company with its projects developing from conceptualization to tangible reality?

This impending year holds the promise of propelling our company to an elevated position, signifying a significant transition towards growth and innovation. The preceding five years served as a foundation for the coming five years—a new era characterized by the introduction of innovative products to the market. The culmination of our previous offerings has paved the way for a new revolution within our industry, poised to redefine norms and set a precedent for groundbreaking achievements in the coming years. We are entering 2024 with key projects in Riyadh & Jeddah such as Capital Avenue Office Tower on the prestigious King Salman Road, and LaPerle Sea-View residential tower in Jeddah.

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