"Knowledge Economic City" signed a real estate development agreement with "Al Rashid Real Estate" to implement the "Al Multaqa Residences" project in Medina, with an estimated development cost of about 2.6 billion riyals ($693.3 million), excluding the land value, and with expected revenues of up to 5 billion riyals ($1.33 billion).

The company disclosed in a statement published on the Saudi stock exchange (Tadawul) website on Monday that the land value for the project has been set at 9,000 riyals per square meter (about $2,400), with an estimated value of 1.346 billion riyals ($359 million).

The project includes residential units, branded units, and commercial spaces, within an integrated development system serving the hospitality, tourism, shopping, entertainment, and residential sectors, supporting the goals of Vision 2030, foremost among them the Guests of God Service Program and the Quality of Life Program.

A map of Knowledge Economic City in Medina (The Company)

Under the agreement, "Knowledge Economic City" is committed to providing the project land while retaining ownership throughout the development period, in addition to completing the sorting, clearance, and transfer of ownership to buyers, noting that the book value of the land is about 94 million riyals ($25.1 million).

In return, "Al Rashid Real Estate" will handle the preparation and approval of engineering designs, obtaining necessary licenses, fully financing the project, appointing consultants and contractors, carrying out construction work, in addition to managing marketing and sales operations, opening and managing the escrow account, delivering units to buyers, and fulfilling post-delivery obligations in accordance with applicable regulations.

The agreement also stipulates that any sales proceeds exceeding the reference development cost will be distributed between the two parties according to agreed percentages, with adjustments to each party's financial entitlements if the final sellable area differs from the agreed minimum.