Bahrain-based RealCapita has entered a Eur 350 million ($447.7 million) agreement with the locally-based Jet Group to develop affordable housing across six cities in the kingdom. RealCapita will start fund-raising in the GCC by the end of June.

The two firms will each take a 50 per cent stake in a special purpose company, likely to be called Jet Sekn, being established to undertake the project. About 16,000 affordable housing units will be constructed in Agadir, Casablanca, Marrakech, Nador, Tangier and Tetouan. Jet Group will match the funds raised by RealCapita and will be responsible for implementation of the scheme.

The investment is the largest so far outside Bahrain by RealCapita, which was launched in February with a focus chiefly on regional real estate (MEED 24:2:06). A major investment in Abu Dhabi is also understood to be imminent.