Riyadh‘s expanding skyline is set for another major addition with the declaration of a 1 billion Saudi Riyal mixed-use development on King Salman Road. Dar Al Majd Real Estate Company revealed Thursday a partnership with Jadwa 47 Fund adn landowner Abdullah bin Mohammed Al Qassim to bring the project-featuring over 350 residential units and 20,000 square meters of commercial space-to fruition. The development underscores continued investment in Riyadh’s infrastructure and reflects growing demand for modern residential and commercial properties in the Saudi capital [[2]].
Dar Al Majd Real Estate Company Logo – Al Majdiah
Dar Al Majd Real Estate Company announced on Thursday, November 9th, an investment agreement with Jadwa 47 Fund, managed by Jadwa Investment, and landowner Abdullah bin Mohammed Al Qassim, to jointly develop a large-scale, mixed-use real estate project in Riyadh.
According to a company statement, Dar Al Majd Real Estate has been appointed as the exclusive developer for the project, which will be located on King Salman Road in Riyadh, adjacent to the SABB station.
The 8,087.96 square meter land parcel will be contributed as an in-kind share to the fund following the completion of necessary procedures, with an estimated value of approximately 259 million Saudi Riyals. Dar Al Majd Real Estate also holds an option to subscribe for up to 50 million Saudi Riyals in fund units.
Preliminary project estimates indicate a total development cost of around 1 billion Saudi Riyals. The project is expected to include over 350 residential units, alongside more than 20,000 square meters of commercial, administrative, and office space, with details to be refined as technical studies are completed and necessary permits are secured.
Dar Al Majdiah will receive a 15% development fee, a 25% performance incentive, and a 2.5% sales commission, in addition to potential investment returns should the company invest the full 50 million Saudi Riyals. The company anticipates financial impact following the final structuring of the fund and the commencement of development phases.
A separate development agreement will be signed subsequently, after fulfilling the requirements for the in-kind contribution and fund procedures. The company stated that no related parties are involved in the agreement.
