Makkah Construction signs 25-year lease for Al Misfalah Park

Logo of Makkah Construction and Development Co.

Makkah Construction and Development Co. signed a 25-year lease agreement with Al Balad Al Ameen for Development and Urban Regeneration Co. for the land of Al Misfalah Park in Makkah, covering approximately 109,000 square meters, to develop and operate the existing park.

In a statement to Tadawul, the company said annual rent amounts to approximately SAR 25.8 million, excluding value-added tax (VAT), with a 10% increase every five years.

The contract runs for 25 years from the date of site handover and includes a total grace period of 30 months, spread over the first five years.

The initial financial impact will arise from rental obligations under the contract. The project is expected to generate a positive financial impact once development work is completed and operations begin, providing the company with a new source of recurring rental income.

Makkah Construction said the project is part of its efforts to develop Makkah's urban landscape by transforming the park into an integrated destination combining green spaces with commercial and recreational activities to serve residents, visitors, and pilgrims.

The project also aims to generate recurring income and support the company's strategic objectives of expanding its asset base and diversifying revenue streams.

The company said the contract was awarded and signed on Nov. 10. No related parties are involved, and the company will announce any material developments in due course.

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