Masar signs 2 land deals worth SAR 438.8M

Masar signs two reservation agreements to sell land plots within the Masar Destination project

Umm Al Qura for Development and Construction Co. (Masar) signed on Sept. 7 two reservation agreements to sell land plots within the Masar Destination project for a total of SAR 438.82 million, according to a statement to Tadawul.

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Masar and its wholly owned subsidiary, Al-Inma First Development Co. Ltd, a special purpose vehicle (SPV), signed the agreements with Mosa Bin Abdulaziz Al Mosa and Sons Real Estate Co.

The plots cover a combined area of 4,886 square meters, with one valued at SAR 237.36 million and the other at SAR 201.46 million.

Proceeds from the sale will finance the development of hospitality units. Under the six-month reservation agreements, the buyer will pay a down payment for each plot, with final sale agreements expected to be signed after the commencement date.

Masar expects the down payments to support liquidity, while the sale transaction or expiry of the agreements will have a positive impact on financial results.

Any further developments will be disclosed in due course, the company added.

According to Argaam data, Masar recently introduced a real estate investment model that allows the sale of land plots in the Masar Destination project through a pre-booking mechanism. The model factors in both time and cost, giving developers more flexibility to complete preparatory work such as preliminary designs, financing arrangements, and licensing procedures, thereby enhancing investment efficiency and improving the projects’ economic viability.

On Sept. 1, the company also signed two reservation agreements to sell land plots within the Masar Destination project to Shoala Al-Wadi Real Estate Co., a special-purpose vehicle owned by a real estate fund managed by SEDCO Capital, for a total of SAR 328.8 million.