MCDC consortium wins SAR 6B contract to develop 2 districts in Makkah

A consortium, which includes Masar, Makkah Construction and Development Co. (MCDC) and AlRajhi United Real Estate, will carry out the project.

The two areas combined cover 1.15 million square meters (West Hindawiyah: 841,300 sqm, and South Hindawiyah: 308,300 sqm), Masar said in a statement on Tadawul.

They will be developed through a real estate investment fund, managed by a Capital Market Authority-licensed financial firm.

The project's preliminary cost is estimated at SAR 6 billion.

The development aims to extend the Masar destination while allowing property owners to participate through in-kind contributions or receive cash compensation.

A fund manager will be appointed to establish and manage a closed-end private real estate investment fund in accordance with CMA regulations and the agreements to be reached among the parties.  

Masar will lead the consortium and act as development manager, while MCDC will serve as the financial partner and AlRajhi United Real Estate as the technical partner.

The award remains subject to regulatory and contractual requirements, including the signing of a framework agreement.

Masar added that the financial impact cannot yet be accurately determined and that any material developments will be announced in due course.

According to Argaam data, RCMC announced yesterday the award of six urban development sites in Makkah, covering more than 2.7 million sqm with a total project value of SAR 13.3 billion.

The awarded sites included South Jurhum, Al Khalidiyah, Al Hajlah, East Hindawiyah, South Hindawiyah, and West Hindawiyah, which were awarded to a number of qualified investment and development consortiums.