A subsidiary of Masqa signs agreement to establish a real estate investment fund to develop land in Riyadh

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Masqa Investment announced the signing by its subsidiary, Masqa First for Real Estate Development (as developer), with Dinar Investment (as fund manager) and Asar Investment (as land owner), an agreement to establish a closed private real estate investment fund to develop land owned by Asar Investment located in Al-Wasam district in Riyadh, with a target fund size of approximately 700 million riyals and a number of units of about 1,000 residential units. The company said in a statement on Tadawul that the parties agreed that the value of the land subject to the agreement is 259.62 million riyals (excluding real estate disposal tax and brokerage fees), and that development fees shall not exceed 15% of total development costs (to be determined later in the development contract). It added that the agreement is valid for 90 days from the date of its signing or until the completion of the fund's establishment procedures, whichever is earlier, with the possibility of extension by written agreement between the parties. Under the agreement, Dinar Investment is responsible for establishing the appropriate investment structure for the fund, preparing its documents, offering its units privately, completing all related regulatory requirements, and managing the fund after establishment until its liquidation. Meanwhile, Masqa First for Real Estate Development is responsible for preparing the project implementation plan, which includes the cost and duration of development, designs, and proposed plans for the project, in addition to developing the project after obtaining the necessary approvals and permits, with the details of the transfer of land ownership, development work, and mechanism for entitlement to development fees to be regulated under the relevant final agreements. It indicated that the financial impact of the agreement is expected to reflect positively on the company's results during the years 2027 and 2028, after completing the fund's establishment procedures, signing the relevant final agreements, and fulfilling the related regulatory requirements. It stated that this agreement regulates the initial principles and arrangements for establishing the fund, and all final details regarding the fund's establishment, transfer of land ownership, and development work are subject to the fund's terms and conditions and the relevant final agreements. The company will disclose any material developments or updates in accordance with applicable regulations and instructions.

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