Al Majdiah, First Avenue win SAR 2B development project in Makkah

The project will be undertaken by a consortium comprising Al Majdiah, First Avenue Real Estate Development Co., and Rikaz Real Estate Co., under the supervision of the Royal Commission for Makkah City and Holy Sites.

The project will be undertaken by a consortium comprising Al Majdiah, First Avenue, and Rikaz Real Estate Co., under the supervision of the Royal Commission for Makkah City and Holy Sites (RCMC).

In separate statements to Tadawul, the two companies said the project is located in the Eastern Hindawiyah district in Makkah, approximately 1.8 kilometers from Masjid Al-Haram, and spans around 235,000 square meters (sqm).

The total estimated cost of the project is approximately SAR 2 billion, including land acquisition and infrastructure development costs, excluding any potential superstructure development works. 

The project aims to develop an integrated mixed-use urban destination featuring residential, commercial, office, and hospitality components, in line with Makkah’s informal settlement redevelopment objectives, contributing to improved quality of life and sustainable urban development.

The project will be developed through a real estate investment fund managed by Jadwa Investment Co.

The consortium's ownership stakes in the project are distributed as follows: 35% for Al Majdiah, 45% for First Avenue, and 20% for Rikaz Real Estate.

The companies expect the contract to be signed on June 10.

The companies stated that, upon completion of the necessary procedures and implementation, the development is expected to strengthen their project portfolio and enhance their presence in landmark urban development projects, in line with its strategy of capitalizing on promising real estate opportunities in prime locations.

The two companies also disclosed a related-party interest involving Abdulsalam Al Majed, board member and Acting CEO, who has an indirect interest through his membership on the board of First Avenue, one of the consortium members.

In addition, board member Khalid Al-Gahtani serves as Chairman of Rikaz Real Estate.

According to data available with Argaam, RCMC awarded on May 31, six urban redevelopment sites in Makkah, covering a total area of more than 2.7 million square meters (sqm), with a combined value of SAR 13.3 billion.

The awarded sites include South Jurhum, Al Khalidiyah, Al Hajlah, East Hindawiyah, South Hindawiyah and West Hindawiyah, which have been assigned to a number of qualified investment and development consortiums.