Ladun signs framework agreement for Al Khalidiyah project in Makkah

Logo of Ladun Investment Co.

Ladun Investment Co. signed a framework agreement with the Royal Commission for Makkah City and Holy Sites (RCMC) for the redevelopment of the informal Al Khalidiyah district in Makkah under the Developed Neighborhoods Program. The project was awarded to a consortium comprising Ladun Investment and Al-Ayuni Investment and Contracting Co.

In a statement to Tadawul, the company said the project scope includes establishing a private closed-ended real estate investment fund in compliance with the Capital Market Authority’s (CMA) Investment Funds Regulations and other relevant laws and regulations, with a capital of no less than SAR 4 billion.

The fund will acquire the project land through a transfer of ownership from the Royal Commission for the purpose of planning and developing its infrastructure, after which the land will be subdivided into plots and marketed and sold on behalf of the fund by the developer consortium, which will serve as the project’s exclusive marketer before exiting the fund.

Ladun and Al-Ayuni will each hold a 50% stake in the project, sharing equally in development, marketing and sales activities, as well as in-kind or cash contributions and related returns.

The project includes the design, execution and delivery of infrastructure works in line with planning and engineering standards that balance development requirements with the preservation of Makkah’s urban and social fabric.

The consortium will also ensure compliance with the requirements of relevant authorities and service providers, including RCMC, Makkah Municipality, National Water Co., Saudi Electricity Co., telecom operators, the Real Estate General Authority (REGA) and the Wafi off-plan sales program.

The fund will have a term of five years, extendable by up to two additional years (5+1+1), according to its terms and conditions.

The company expects the project to have a positive impact on profitability from 2027 until the end of the fund’s term.

The project was awarded on May 31, 2026, and the framework agreement was signed on June 24, 2026. There are no related parties involved, the company added.

Ladun was awarded two contracts under the Real Estate Balance Program – Phase One, in a consortium with Al-Ayuni Investment by the Royal Commission for Riyadh City (RCRC), both totaling SAR 2.4 billion (inclusive of VAT).