Smart Accommodation for Residential Complexes Company (sarcc), a unit of Saudi sovereign wealth fund PIF, announced today (February 16) the signing of a non-binding Heads of Terms (HoT) with Mawref Company for the development of a 12,000-bed worker accommodation project in North Riyadh, at an investment of SAR669 million ($178.2 million).

The proposed development will be delivered on a land area of 120,000 sq m with a total built-up area of 150,000 sq m. The first phase of operations is expected to kick off in Q1 2029, said the company in a statement.

The project underscores sarcc’s focus on delivering purpose-built, community-oriented accommodation solutions that respond to rising demand for workforce housing driven by Saudi Arabia’s expanding logistics and industrial sectors, it stated. 

On the deal, James Atkinson, the Acting CEO of sarcc, said: "This proposed development with Mawref represents a significant step in advancing sarcc’s mission to deliver scalable, high-quality worker accommodation solutions across the kingdom."

"The project reflects our commitment to enhancing workforce wellbeing while supporting the rapid growth of key sectors aligned with Saudi Arabia’s development priorities," he stated.

"Through collaboration with local partners such as Mawref, which brings proven expertise in industrial and logistics real estate development and long-term operations management, sarcc continues to reinforce its commitment to local content and partnerships with leading private sector Saudi entities," he added.

Rami Alshaikh, CEO of Mawref Company, said: "This partnership with sarcc marks an important milestone in advancing our long-term strategy. It complements Mawref’s experience in the development and operation of workforce accommodation, industrial, and logistics assets, while expanding our portfolio through a partnership-led model with a leading national entity."

"Through this collaboration, we aim to deliver and operate safe, high-quality living environments that support workforce wellbeing, enhance productivity, and align with the Kingdom’s evolving standards for quality housing," he added.-TradeArabia News Service