Saudi-listed Sumou Real Estate Company has signed an agreement with Saudi Downtown Company for the development, construction, marketing and sale of a residential project in Downtown Al Khobar, involving mid-rise buildings on a 28,292-sq-m plot south of the Boulevard.

A wholly-owned subsidiary of Saudi Arabia's Public Investment Fund (PIF), SDC was established in 2022 mainly to develop modern, mixed-use downtown areas and commercial destinations across 12 Saudi cities as well as boost local economies, support non-oil GDP growth, and improve the quality of life.

Under the agreement, SDC will contribute the land, while Sumou will make a partial investment and finance the remaining development costs through proceeds from off-plan sales, said Sumou in its filing to Saudi bourse PIF.

Sumou will manage the project's development, construction, marketing and sales over a 48-month period from the agreement's effective date. 

The project is expected to have a positive impact on its financial results once the agreement takes effect and work begins.

Lauding the Sumou partnership, SDC said it is exploring the establishment of a real estate fund in partnership with Sumou to develop five- and four-star hotels and serviced hotel apartments within its Downtown Al Khobar project.

The Saudi PIF unit will focus on retail, entertainment, offices, housing, and hospitality sectors spanning a total land area of roughly 10 million sq m across target cities, SDC added.-TradeArabia News Service