Asas Makan Signs Development and Implementation Agreement for a Residential Project in Riyadh

Logo of Asas Makan for Development and Real Estate Investment

Asas Makan for Development and Real Estate Investment announced the signing of a real estate development agreement with Blom Real Estate Investment Fund XII, managed by Blom Investments Saudi Arabia as fund manager, to develop and implement a qualitative residential project in Al Narjis district in Riyadh.

The company said in a statement on Tadawul that the target size of the fund is about 303 million riyals, while the project will be built on a total land area of 16.62 thousand square meters, and includes the development of about (290) residential units, reflecting the size of the project and its importance within the portfolio of qualitative residential projects targeted by the company in Riyadh. It explained that the estimated total cost of implementing the project, including development management fees, amounts to 131.88 million riyals, excluding value-added tax. The development management fees due to the company under the agreement amount to 11.22 million riyals, excluding value-added tax.

It added that the agreement includes the company's participation in the fund through subscription in (14,958) investment units with a total value of 14.96 million riyals, supporting the company's strategy of investing in real estate funds and building partnerships with specialized investment entities, in accordance with the relevant final agreements. It expected that the financial impact of the agreement would be positively reflected on the company's financial results, according to the progress of the project's work and fulfillment of the entitlement conditions stipulated in the agreement, during the project implementation period of 18 months from the date of fulfilling the preconditions and payment of the advance payment. It pointed out that this project comes as an extension of the company's strategy aimed at expanding the management and development of real estate projects, building effective partnerships with landowners and investment funds, contributing to the investment and development of lands and transforming them into qualitative real estate projects, diversifying its revenue sources, strengthening its market share, and supporting the growth and sustainability of its business in the long term.

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