Asas Makeen for Development and Real Estate Investment has signed an agreement with Enbuilding Company to manage the development of a residential project in the Al-Arid district, north of Riyadh.
The project’s estimated cost stands at 55.62 million riyals, or about $14.83 million, excluding value-added tax.
Execution over 10 months
In a statement on the Saudi Exchange (Tadawul), Asas Makeen explained that the project spans a plot of land covering 8,800 square meters, owned by Enbuilding.
The company will handle development management and oversee execution, in line with the approved scope of work, timeline and costs.
The agreement also set the execution period at ten months. The estimated cost includes development fees, while the final cost will depend on the actual approved expenses and the terms of the contract.
Expansion in real estate development
The company expects the financial impact to materialize during the execution period, depending on the progress of the work and the fulfillment of the conditions for fee entitlement.
The agreement forms part of Asas Makeen’s strategy to expand its third-party real estate development activity. The company also disclosed that it holds a 15% stake in Enbuilding’s capital, which constitutes an ownership relationship between the two parties.
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