Retal, Watheeq Capital sign MoU to launch real estate fund for Makkah residential tower

Logo of Retal Urban Development Co.

Retal Urban Development Co. signed on June 30 an MoU with Watheeq Capital to launch a closed-ended REIT fund valued at SAR 600 million to develop a 28-story residential tower within the Masar destination in Makkah.

The agreement is valid for 60 days and can be extended once with mutual consent, according to a statement on Tadawul.

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The project will include around 200 residential units and is located 2.5 km from the Grand Mosque, near the Haramain High-Speed Railway station.

Retal expects the development to positively impact its financial results between 2026 and 2029, adding that no related parties are involved in the MoU.

Umm Al Qura for Development and Construction Co., owner and operator of the Masar destination, recently sold a 2,359.27 sqm land plot within the project for SAR 145.33 million, excluding taxes and fees.

The buyers were Alinma 1st Development Ltd. Co.—a special purpose vehicle (SPV) holding the units of the Alinma Makkah 1st Development Fund, fully owned by Masar—and Watheeq Retal Roya Al-Haram Real Estate Fund managed by Watheeq Capital, according to Argaam’s data.