Cayan Group, the developer of the twisted Cayan Tower in Dubai Marina, has broken ground on a 100 million Saudi riyal (Dh97.9m) office tower project in Riyadh.
The 14-storey CMC Tower on King Fahd Road in the Saudi capital is being developed in partnership with Saudi financial services company Mefic Capital. Both firms will house their headquarters in the building once the project completes, which is anticipated to be in two years’ time.
Alongside the office space, it will also house a new gym and an advertising screen at the top of the building.
The CMC Tower was one of three new projects worth a combined Dh3.1 billion that Cayan Group announced this year at a launch event in Dubai during which the French stuntman Alain Robert, whose nickname is Spiderman, climbed the Cayan Tower.
“CMC is strategically located on the King Fahd Road in Riyadh and is a perfect model of a multi-use integrated commercial complex, which includes luxury offices and distinctive facilities such as a screen and a high-tech fitness centre, among others,” said Ahmed Alhatti, Cayan Group’s chairman.
A contract to oversee construction was awarded to the Jordanian firm Consolidated Consultants this year. A number of contractors have been shortlisted to build it.
A spokesman said that “the selected contractor will be appointed soon”.
More than 1 million square metres of office space is set to be delivered in Riyadh over the next three years – a 41 per cent increase on the current stock of 2.4 million sq metres. However, delays to construction projects at the new King Abdullah Financial District (KAFD) are helping to underpin rents in the short term, according to the property consultancy JLL.
Average rents in the first quarter were flat at 1,060 riyals per sq metre, and the amount of vacant office space in the city declined to 16 per cent of the total, from 19 per cent in the first quarter of last year.
KAFD, which also overlooks King Fahd Road, is a new, $11.6bn financial hub that will have more than 112 buildings, according to a recent Arab News report. The project value had previously been estimated at $7.8bn.
With so much new stock due to come on to the market, JLL said that “a number of private developers have delayed or reduced the size of their projects”.
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