IslamicFinance.de

The local unit of HSBC Holdings is advising Saudi Arabia’s Public Pension Agency on the sale of its struggling financial hub to the country’s sovereign wealth fund. The Public Investment Fund is offering to acquire the Riyadh district for less than the pension fund’s 30 billion riyals ($8 billion) investment. The wealth fund is being advised by JPMorgan Chase, but a deal hasn’t been reached yet. The King Abdullah Financial District (KAFD) is about 70% complete and is failing to attract its target clientele, banks, auditors and lawyers. The sale is meant to rehabilitate the 1.6 million square-meter district which includes over 70 buildings. The district will become a special economic zone with looser visa rules and direct links to Riyadh airport as part of plans to restructure the development.