Red Sea project secured capital for 1st phase; moving into operations: CFO

RIYADH: The 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 it’s now accelerating work on the project, its chief financial officer said.

The company, known as TRSDC, which until now was focusing on execution and delivery of three hotels, has shifted gears and turned its attention toward operations. It has already hired the first general manager of the three hotels and is identifying top executives for the other two hotels, Jay Rosen told Arab News.

“We are at the starting point of the pre-opening process as we ramp up our operations over the next 12 months,” said the executive while adding that they remain on schedule to welcome first guests by next year.

It has secured all the needed equity from the Public Investment Fund to partner with nine international hospitality brands that will operate resorts in the first phase of development at the Red Sea project.

“We made some additional signings. We haven’t announced those yet. And there are others we’re completing as well,” said Rosen. The company last year roped in marquee 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 tourism resort featuring more than 90 unspoiled islands along Saudi Arabia’s west coast. By completion in 2030, it will consist of 50 hotels with 8,000 rooms and 1,300 residential properties. 

TRSDC has seen a lot of interest from Saudi banks to provide green financing for its development. Rosen said the company is considering to rely on both equity and debt as well for its other development AMAALA, an ultra-luxury site north of TRSDC’s main project.

True to its commitment to creating opportunities for the locals in the transformative Vision 2030 blueprint, the company is exploring avenues for Saudi citizens and investors to invest in the advanced stages of the project execution.

“At some point in time, we will make opportunities available for the retail investor through REITs. They can come in many forms, either through a fund or through a public offering,” said the executive.

The company early last year received a capital infusion of a $3.76 billion loan to fund phase one of the project from Saudi National Bank, Riyad Bank, Banque Saudi Fransi, and Saudi British Bank.

The energy requirements for the development will be generated on a sustainable, fully dispatchable basis by a 340MW solar photo-voltaic plant with an associated storage system utilizing a battery energy storage system plant for captive use.