Al Majdiah signs SAR 266M deals to develop 3 projects in Riyadh

The projects are expected to have a positive financial impact on the company’s results from their commencement

Dar Al Majed Real Estate Co. (Al Majdiah) signed, on Dec. 11, agreements with the Jadwa Al-Manzel Real Estate Fund to develop three projects worth SAR 266 million in Riyadh, under the Off-Plan Sales Program (Wafi).

In separate Tadawul statements, the company said the first agreement includes the development of a residential tower on Olaya Street, King Fahd district, Riyadh.

Spanning approximately 3,250 square meters (sqm), the project will be completed in 42 months and cost nearly SAR 115.5 million. It has a built-up area of 24,336 sqm.

The second agreement is to develop a residential apartment project in the Arqa district of Riyadh, covering approximately 7,103.61 sqm. The 30-month project is estimated at nearly SAR 65.4 million. It aims to develop and operate a land plot owned by the Jadwa Al-Manzel Real Estate Fund in the Arqa district, through establishing an integrated residential apartment complex, with an estimated built-up area of 25,500 sqm.

As for the third project, the company aims to develop a residential compound project in the Hittin district of Riyadh, spanning approximately 14,709 sqm. The 36-month project will cost nearly SAR 85.1 million. It is to develop and operate a land plot owned by the Jadwa Al-Manzel Real Estate Fund in the Hittin district, through building a residential compound, with a built-up area of 30,764 sqm.

The projects are implemented under a cost-plus model, whereby actual development costs are added to development, performance, as well as sales and marketing fees.

The projects align with Al Majdiah’s strategy to expand its portfolio of high-quality residential developments in Riyadh, strengthening its presence in the market and supporting its contribution to providing premium residential products that meet customer expectations.

The projects are expected to have a positive financial impact on the company’s results from their commencement, with the impact appearing gradually in line with the project’s progress and completion levels.

The deals do not involve related parties. However, Acting CEO and board member Abdul-Salam Al-Majed serves as a board member of the Jadwa Al-Manzel Real Estate Fund, representing the company. This is considered an indirect interest in accordance with the relevant regulations.

In addition, Al Majdiah owns 10% of the fund.