Masar inks 3 reservation agreements to sell land worth SAR 689.3M

Masar seeks to develop residential, hospitality units

Umm Al-Qura for Development and Construction Co. (Masar) said special purpose vehicles (SPV) of its fully owned development fund signed two reservation agreements to sell land plots within the Masar Destination project for SAR 462.11 million.

Alinma First Development Co. Ltd. and Al-Inma Second Development Co. Ltd.—the SPVs for Masar-owned Alinma Makkah Development Fund I and II—signed the agreements with Madar Al-Tase'e Co.—the SPV of a real estate fund managed by Alistithmar Capital, according to a statement on Tadawul.

The two plots span 6,613.58 square meters (sqm), where the fund is slated to develop residential units. The first plot is worth SAR 260.97 million, and the second plot SAR 201.1 million.

The memorandum of understanding (MoU) is set to expire on June 30, 2026, the statement added.

Separately, Masar announced another reservation agreement to sell a land plot within the Masar Destination for SAR 227.22 million.

The agreement was signed with Sanduq Sharq Al-Asemah Co., the SPV of a real estate fund managed by Alistithmar Capital, to develop hospitality units.

The plot area is 3,000 sqm, and the MoU expires on Sept. 30, 2026.

As per the agreements, the fund pays a deposit for the reservation of the plot of land with the plan to execute the final sale agreement during the duration of the reservation agreement.

The deals are expected to have a positive impact on liquidity from the receipt of the deposit upon signing the reservation agreements and on financials upon completing the sale transactions or the expiry of the reservation agreements, the two statements noted.

Any related material developments will be announced, the company said.

Since its listing on the Main Market (TASI) in March, Masar sold 21 land plots in the Masar Destination for SAR 3.63 billion, Argaam data showed.

** Reservation agreement.

According to the company’s prospectus, Masar aims to sell 111 plots out of its total 205 land plots and lease 28 properties. It plans to develop 14 properties independently and 52 properties in partnership with strategic partners.