Saudi Arabia’s Sumou Real Estate Company has announced that it had signed a long-term lease, development and operation agreement with Saudi Airlines Real Estate Development Company (SARED) for a land plot in Jeddah. 

The move is aimed at developing an integrated mixed-use project on the 78,374 sq m site located in the southwestern corner of a master-planned area, said Sumou in its bourse filing.

Under the agreement, the annual rental value is set at SAR11.76 million ($3.13 million). Rent will increase every five years at an average rate of 21%, it stated.

Payments will commence upon the issuance of building permits or after 18 months from the signing date, whichever comes first.

Sumou said the financial impact of the project is expected to begin once the land is received.-TradeArabia News Service