Dar Al Majd Real Estate Company (Al Majdiah) has announced that it has signed an agreement with the Jadwa Al Manzel Real Estate Fund for the development of three residential projects worth SAR265 million ($71 million) in Riyadh under the Off-Plan Sales Program (Wafi).

These projects will come up in King Fahd; Hittin and Arqa districts of the Saudi capital on a total land area of about 25,062 sq m, said Al Majdiah in its filing to Saudi bourse Tadawul.

As per the agreement, the Saudi group will develop, execute and market the project under a cost-plus model, in which actual development costs are added to development, performance, and sales and marketing fees, it stated.

The fund is represented in the transaction by Ahdath Al Bunayat Real Estate Company, it stated.

On the King Fahd district project, the Saudi developer said the scope of work includes development, execution and management of a 3,250-sq-m land parcel owned by the Jadwa Al Manzel Real Estate Fund on Olaya Street under Wafi.

The project comprises a residential tower with an estimated built-up area of 24,336 sq m. The entire work will be completed within a duration of 42 months at a total cost of SAR115.4 million, it stated.

On the Hittin district project, Al Majdiah said it will come up on a land area of about 14,709 sq m under Wafi. The entire project, which is estimated to cost SAR85.1 million, will be competed within a three-year period.

On the Arqa district project, the Saudi developer said it will come up on a land area of 7,103.61 sqm, under Wafi. As per the deal, the work on the integrated residential apartment complex, with an estimated built-up area of 25,500 sq m, will be completed within a 30-month period. 

Al Majdiah said these project are in line with its strategy to expand its portfolio of integrated residential developments in Riyadh and to strengthen its market presence.

It is expected to have a positive financial impact on the company’s results starting from the date of commencement of work on the project, with the impact appearing gradually in line with project progress and completion levels, it added.-TradeArabia News Service