Kingdom Holding sets up JV to develop tourist resort

Kingdom Holding Co. (KHC) incorporated a joint venture (JV), named East Shura III Real Estate Co., the company said in a filing to Tadawul.

The JV will develop a tourist resort, to be operated by Four Seasons hotels and resorts group on the Shura Island, Saudi Arabia's west coast.

The JV was established through KHC's newly wholly owned subsidiary, Sea Front Co. Ltd and The Red Sea Investment Co. II, which is a subsidiary of Red Sea Global Co. (RSG).

The partnership agreement was signed on Dec. 21. In October, RSG entered into a joint venture agreement worth SAR 2 billion with KHC to develop a tourist resort, to be operated by the Four Seasons hotels and resorts group, Argaam earlier reported.

The project entails forming a JV, 50% of which will be owned by a special purpose entity (SPE) that is wholly owned by KHC, and the remaining 50% by a SPE owned by RSG.