Riyadh – Mubasher: Knowledge Economic City signed a memorandum of understanding (MoU) with Dar Al Majed Real Estate Company (Al Majdiah) and Capital Hill Solutions to develop a qualitative residential project in Madinah with an estimated initial cost of SAR 2.80 billion.
The development scheme, located on a 97,000 square meter site, is expected to generate revenues exceeding SAR 4 billion.
The development will be executed through a closed-ended real estate investment fund. Knowledge Economic City will contribute land valued at SAR 875.40 million, receiving SAR 89 million in cash and the remaining SAR 786.40 million in fund units.
Al Majdiah will contribute SAR 200.70 million in cash and serve as the development manager, while Capital Hill Solutions will manage the fund. The proposed ownership structure is approximately 80% for Knowledge Economic City and 20% for Al Majdiah.
The project features approximately 2,700 residential apartments, 8,000 square meters of commercial space, and over 3,500 parking spaces. It primarily targets non-Saudi Muslim customers under recent property ownership regulations.
The MoU includes a 90-day exclusivity period for due diligence and final agreements. Knowledge Economic City noted that the land's approximate cost is SAR 103 million.
