Al Majdiah signs SAR 1B Riyadh real estate deal

Al-Majdiah says the project cost is expected to near SAR 1 billion. 

Dar Al Majed Real Estate Co. (Al Majdiah) signed an investment agreement on Nov. 13 with Jadwa Fund 47, managed by Jadwa Investment Co., and landowner Abdullah Al-Qassim to participate in the development of a premium mixed-use real estate project in Riyadh.

Under the agreement, Al Majdiah has been appointed as the exclusive developer of the project, which will be located on King Salman Road, adjacent to the SAB Station, the company said in a statement to Tadawul, today, Nov. 16.

The 8,087.96 m² land will be contributed as an in-kind share to the fund after completing necessary procedures, with an estimated value of around SAR 259 million. Al Majdiah also holds an optional right to subscribe in cash to the fund’s units for up to SAR 50 million.

Preliminary studies indicate the total project cost is expected to reach around SAR 1 billion. The development will include over 350 residential units, along with more than 20,000 m² of commercial, administrative, and office space. More detailed information will be available once technical studies are completed and permits obtained.

Al Majdiah said it will receive 15% in development fees, 25% in performance incentives, and 2.5% in sales commissions, in addition to potential investment returns if it participates with SAR 50 million.

The company expects the financial impact to be reflected after the fund’s final structure is completed and the development phases begin. A separate development agreement will be signed later, following completion of the in-kind contribution and fund procedures.

The company confirmed there are no related parties involved in the deal.