“Al Majidiya” signs an agreement with “Jadwa” to develop a real estate project in Riyadh
Dar Al Majid Real Estate Company signed "Majidiya" An investment agreement with Jadwa Fund (47), managed by Jadwa Investment Company, and with the land owner, to participate in the development of a qualitative multi-use real estate project on King Salman Road in Riyadh.
According to the company’s statement on the website "Saudi Arabia trading"According to the agreement, Dar Al Majid Real Estate Company was appointed as the exclusive developer of the project that will be developed on King Salman Road in Riyadh, next to the SABB station.
The land – with an area of 8,087.96 square meters – will be offered as an in-kind share in the fund after completing the necessary procedures, with an estimated value of approximately 259 million riyals. Dar Al Majid Real Estate Company also has an optional right to subscribe for cash in the fund’s units for up to 50 million riyals.
According to preliminary estimates of the project study, the total cost of the project is expected to reach about one billion riyals, provided that it will become more precise with the completion of technical studies and the issuance of the necessary licenses.
This step comes as an extension of Dar Al Majid Real Estate Company’s strategy of developing in partnership with landowners and attracting specialized investment funds, in a way that supports the company’s expansion and strengthening its real estate portfolio.
According to preliminary studies, the project is expected to include more than 350 residential units, in addition to Commercial, administrative and office spaces exceeding 20 thousand square meters.
An independent development agreement will be signed later after completing the requirements for the in-kind share and the fund’s procedures.
Dar Al Majid Real Estate Company will obtain the following:
• 15% development fee
• 25% performance incentive
• 2.5% seeking sale
In addition to investment returns in the event of entering the company in the amount of 50 million riyals.
The financial impact is expected to appear after the completion of the final structuring of the fund and the start of the development stages.
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