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Asas Mekin for Development and Real Estate Investment signed on July 9 an agreement for real estate development with Bloom Real Estate Investment Fund XII, managed by Bloom Saudi Investment Company, to develop and implement a residential project in Al Narjis district in Riyadh, with an estimated total cost of SAR 131.88 million, excluding value-added tax.

The company clarified in a statement on Saudi Tadawul today Sunday that the agreement stipulates appointing Asas Mekin as development manager for the project, to manage, develop and execute the project on behalf of the fund, whose target size is about SAR 303 million.

The project is built on land with an area of 16.62 thousand square meters, and includes the development of about 290 residential units, as part of the company's strategy to expand in developing quality residential projects in Riyadh.

It added that the development management fees due to the company under the agreement amount to SAR 11.22 million, excluding value-added tax.

Asas Mekin will also participate in the fund by subscribing to 14,958 investment units with a total value of SAR 14.96 million, supporting its direction towards investing in real estate funds and building partnerships with specialized investment entities.

The company indicated that the agreement is part of its strategy aimed at expanding in managing and developing real estate projects, and building partnerships with landowners and investment funds, which contributes to diversifying revenue sources, enhancing market share, and supporting sustainable growth.

The duration of the agreement is 18 months, and its financial impact is expected to positively reflect on the company's financial results according to the progress of project implementation and fulfillment of the entitlement conditions stipulated in the agreement, after completing the prerequisites and paying the advance payment.

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