South Korea’s leading construction management (CM) company HanmiGlobal Co. has set up a joint venture with Saudi Arabia’s largest property developer Al Akaria in the Middle Eastern country, a move that is expected to allow the Korean company to join the country’s 550 trillion won ($493.2 billion) property development project.
HanmiGlobal said on Wednesday that it and Al Akaria have set up a 40-60 percent joint venture named Al Akaria Hanmi for Project Management with capital of 1.2 billion won ($1 million). The joint venture will fully manage all projects conducted by Al Akaria in its capital Riyadh.
The new joint venture is also expected to help HanmiGlobal to take part in the country’s mega-city Neom project worth of 550 trillion won and the tourism complex project integrating 50 islets on the Red Sea. The company will foster the growth of the joint venture with its expertise in construction management that it has built up over the last two decades, said HanmiGlobal Chairman Kim Jong-hoon.
Founded in 1976, state-owned Al Akaria has participated in the government’s major development and construction projects of social overhead capital, as well as various commercial facilities and large-sized residential complexes. The country’s sovereign wealth fund Pension Investment Fund currently holds a 60 percent stake in it.
By Choi Jae-won and Lee Ha-yeon
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