Al Majdiah signs SAR 211.6M Riyadh development agreement

Logo of Dar Al Majed Real Estate Co. (Al Majdiah) 

Dar Al Majed Real Estate Co. (Al Majdiah) signed an agreement with Jadwa Al-Manzel Real Estate Fund to act as the exclusive developer of a Riyadh real estate project valued at SAR 211.6 million, the company said in a statement to Tadawul.

Under the agreement, Al Majdiah will undertake the development, execution, management, and marketing of the project under a cost-plus model based on actual costs incurred plus a development fee.

The project involves the development and management of a 27,000-square-meter site in Riyadh's Granada district and includes the construction, marketing, and sale of residential apartment units in accordance with the kingdom's off-plan sales regulations.

Al Majdiah said the project is part of its strategy to expand its portfolio of residential and commercial developments in Riyadh and strengthen its presence in the real estate development sector.

The agreement was signed on June 9 and has a duration of 24 months.

The company expects the project to contribute positively to financial results from the start of implementation, with revenue recognized progressively based on the percentage of completion during the execution period.

Al Majdiah disclosed related-party interests in the transaction. Board member and Acting CEO Abdulsalam Al Majed serves on the board of Jadwa Al-Manzel Real Estate Fund as the company's representative, constituting an indirect interest in the deal.

The company also holds a 10% stake in the fund's units.