Asas Makeen signs contract with Wathiq Marketing

Asas Makeen signed a marketing, sales, and leasing agreement with Wathiq Marketing Co.

Asas Makeen Real Estate Development and Investment Co. signed, on Dec. 29, a marketing, sales, and leasing agreement with Wathiq Marketing Co.

In a statement to Tadawul, the company said that the deal aims to manage marketing campaigns and the sale and leasing of residential and commercial units for the company's projects according to professional plans that meet market demand and contribute to project success.

The contractual value includes a marketing commission of 2.5% of the value of the sale of each real estate unit (including VAT), while the expected value of the total contract is SAR 10 million.

The actual commission is calculated based on the actual sales and the final value may vary according to the sales volume.

The agreement includes providing integrated marketing, sales and leasing services to support Asas Makeen projects, including managing marketing campaigns, enhancing the projects’ presence in the market, increasing access to target groups, finalizing the procedures for selling and leasing residential and commercial units, and adhering to real estate advertising regulations and licensing requirements.

The contract is valid for one year and could be renewed, the statement added, noting that the agreement is expected to have an impact on financial results during the contractual period, but the value of this impact depends on the volume of sales.

The deal is a related party transaction through the company’s Vice Chairman, Anas Al-Hadlaq, however it was concluded within the context of the company’s normal business operations, and no preferential advantages were granted, the company stated.