Riyadh – Mubasher: Dar Al Majed Real Estate Company (Al Majdiah) signed a memorandum of understanding (MoU) with Knowledge Economic City and Capital Hill Financial to develop a mixed-use real estate project in Madinah.
The preliminary total cost for the development is estimated at SAR 2.80 billion.
The project will be situated on approximately 97,000 square meters of land within Knowledge Economic City.
Initial plans include the construction of 2,700 residential apartments for sale, alongside a commercial component offering a net leasable area of 8,000 square meters and more than 3,500 parking spaces.
Under the proposed structure, the project will be financed through a closed-ended real estate investment fund managed by Capital Hill Financial.
Knowledge Economic City will provide the land as an in-kind contribution for an 80% stake, while Al Majdiah will hold 20%.
Dar Al-Majed’s total contribution is valued at SAR 200.70 million, comprising SAR 89 million for its share of the land and SAR 111.70 million in cash.
The MoU includes a 90-day exclusivity period to complete due diligence and finalize definitive agreements.
Al Majdiah will serve as the development manager, overseeing construction, marketing, and property management.
This week, Al Majdiah inked a SAR 185 million real estate development agreement with the Jadwa Al Maqar Real Estate Fund for the Mishraf Al Majdiah project in Madinah.
