Document background
The Real Estate Private Equity Term Sheet is a crucial document used in the initial stages of establishing a real estate investment fund in Saudi Arabia. It serves as a blueprint for the final fund documentation and is typically prepared when parties have reached preliminary agreement on key commercial terms but before full legal documentation is drafted. This document must carefully balance Saudi Arabian regulatory requirements, including Capital Market Authority (CMA) regulations and Shariah compliance, with international private equity market practices. It includes essential information about fund structure, investment strategy, governance, economic terms, and exit mechanisms. The term sheet is particularly important in the Saudi Arabian context as it must address specific local requirements such as foreign ownership restrictions, Shariah-compliant financing structures, and local real estate regulations while maintaining alignment with global private equity standards.
