KEC signs 2 contracts worth SAR 259.2 mln for Knowledge City Hub, inks deal with Hilton
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Logo of Knowledge Economic City
Knowledge Economic City (KEC) signed, on April 22, 2021, two contracts at a total value of SAR 259.2 million for the execution of structural works at the mall of Knowledge City Hub project, under its first phase that includes a mall, hotel, residential tower, commercial boulevard and car parking.
The contract for the execution of structural works at the mall was signed with Al-Saad Contracting Co. at a total value of SAR 242 million, the company said in a statement to Tadawul. KEC signed another contract with EHAF Consulting Engineers to supervise the execution of structural works at the main mall of the Knowledge City Hub project at a total value of SAR 17.4 million.
The two 18-month contracts will be valid from May 2021.
The consultancy fees will be paid in monthly payments, based on work progress. Hence, the financial impact and the period on which it will be reflected will be determined later, KEC added, noting that there are no related parties to the deal.
In a separate statement, KEC inked an agreement with Hilton Worldwide Manage Limited to operate Knowledge City Hub Hotel and provide engineering consultancy services during the design and execution phase through the Hilton brand.
The contract value is a share in the hotel’s operating revenue, KEC added, noting that the contract is renewable upon mutual agreement of the two parties.
The five-star hotel will offer 354 guest rooms, over 1,300 square meters (sqm) of meeting space plus a range of additional facilities, including four dining options.
It is scheduled to begin welcoming guests in 2024.
KEC is also finalizing studies to develop a luxury residential apartment tower with 100 housing units that will be linked to the mall, restaurants, services and hotel areas and to the parking lot with a capacity of 6,000 vehicles.
The financial impact cannot be currently estimated. It will be determined upon completion of the development phase and commencement of operations, KEC added, affirming that there are no related parties to the deal.