First Avenue inks SAR 27.4M infrastructure development contract in Riyadh

Logo of First Avenue for Real Estate Development Co.

First Avenue for Real Estate Development Co. announced its appointment as the developer of an infrastructure development project by Aljada Industrial Real Estate Fund during the Real Estate Future Forum.

According to a statement to Tadawul, a deal was signed to develop a 3.6-million-square-meter (sqm) land plot in Al-Dilam Governorate, Riyadh. The development fees amount to SAR 7.5 per sqm, excluding value-added tax of 8% on the project’s actual costs, with an estimated total value of SAR 27.35 million.

The agreement includes executing the project in accordance with approved plans, preparing the master business plan, supervising the industrial city’s master plan, obtaining regulatory licenses, appointing project contractors, and project marketing.

However, as the required regulatory licenses are not issued yet, the agreement and the project’s execution timeline have not been determined, and it will be developed and announced later through an officially approved addendum. Moreover, any material developments will be proclaimed in due course, the statement added.

The company expects a positive financial impact from the contract to be reflected starting in 2027.

First Avenue highlighted that the deal involves related parties, as it owns units in Aljada Industrial Real Estate Fund, which represent 5.25% of its capital, and Vice Chairman Nader Alamri is also an investor in the fund.