Masar signs SAR 251.8M land sale agreement for hospitality tower

Masar expects the transaction to positively impact its liquidity and financial results.

Umm Al Qura for Development and Construction Co. (Masar) said it signed a reservation and sale agreement for a land plot within Masar Destination in Makkah with Sharq Al Asimah Fund Co. to develop a hospitality tower for SAR 251.77 million.

The announcement follows an update to the land subdivision plan to align with the project’s requirements, the developer said in a statement to Tadawul.

The land plot is located in Zone 2, overlooking the southern section of King Abdulaziz Road, and spans 3,341 square meters.

Masar said the land plot has a book value of SAR 124 million, adding that the transaction will positively impact liquidity and financial results. The proceeds will fund working capital and existing projects.

According to Argaam data, the company generated an estimated capital gain of around SAR 127.77 million from the transaction.

According to data available with Argaam, Masar signed a reservation agreement in November 2025 to sell a 3,000-square-meter land plot within Masar Destination in Makkah to Sharq Al Asimah Fund (the special purpose vehicle of a real estate fund managed by Alistithmar Capital) for SAR 227.22 million. The fund planned to develop hotel units.

The agreement expired on Sept. 30, 2026.

Since listing on the Main Market, Masar has sold and signed reservation agreements to sell several land plots within Masar Destination.

**A reservation agreement
***The agreement expired with no sale transaction.