Saudi Arabia's Sumou Real Estate Company has announced that it had signed a project development management agreement with Arch 3 Real Estate Development Company for the benefit of Arch Real Estate Development Fund 3 to oversee the development of a 6,394-sq-m mixed-use project in Jeddah.

The project will have a total built-up area of about 57,000 sq m, Sumou said in its filing to the Saudi bourse Tadawul.

As per the deal, Sumou will manage all stages of the development, including feasibility studies, design, obtaining regulatory approvals, construction oversight, and the marketing and sale of the project's real estate units.

The company will receive a development management fee equivalent to 10% of the construction contract value, a marketing fee of 3% of the project's total sales value, and a real estate brokerage commission of 2.5% of total sales, it stated.

With expected sales exceeding SAR700 million ($184 million) , the project reflects the growing confidence in Saudi Arabia’s real estate sector, it added.-TradeArabia News Service