The Public Investment Fund (PIF) and the global real estate services company JLL have announced an agreement for JLL to acquire a significant stake in The Saudi Facility Management Company (FMTECH). The transaction is conditional on customary closing conditions.

The agreement aligns with the PIF’s strategy to enable and advance partnerships with the private sector. The sovereign wealth fund will continue to hold a majority stake in FMTECH, which it established in 2023. This national integrated facilities management company provides services to PIF’s portfolio companies, alongside private and public sector clients across Saudi Arabia.

The partnership merges JLL’s global network and expertise in technology and operations with the PIF’s market presence and scale. The aim is to generate new commercial opportunities for FMTECH. For JLL, the investment allows the firm to expand its service capabilities within the Saudi market, building upon its existing strong relationship with the PIF.

FMTECH is set to integrate JLL’s advanced digital facilities management platforms and global operating systems. This move is expected to significantly elevate the quality, efficiency and transparency of FMTECH’s service delivery, driving long-term value creation for its clients. The company will also benefit from the localisation of global knowledge and technologies.

The deal supports the PIF’s unique mandate to deliver sustainable returns and drive the country’s economic transformation. It also aligns with the Fund’s broader strategy of increasing private sector investment from domestic and global partners into its portfolio companies to help them unlock their full potential.

Saad Alkroud, Head of the Local Real Estate Investment at PIF, commented on the significance of the move. He stated: “Facilities management is a key component of the real estate and infrastructure sector, and of PIF’s local real estate strategy, which drives economic transformation and diversification, advances urban innovation and enhances quality of life. JLL’s investment will further accelerate FMTECH’s progress and create new opportunities for growth that will benefit the sector.”

Neil Murray, CEO, Real Estate Management Services at JLL, acknowledged the benefit of the combined strengths. He said: “With this investment, we’re combining JLL’s best-in-class operational and technological facilities management capabilities with FMTECH’s local market knowledge, to deliver exceptional service to clients in the rapidly growing Saudi market.”