Al Majdiah signs MoU for SAR 2.8bn real estate project in Madinah

Al Majdiah Real Estate has entered into a Memorandum of Understanding (MoU) with Knowledge Economic City and Capital Hill to develop a large-scale mixed-use real estate project in Madinah. The proposed project, valued at SAR 2.8 billion, will encompass both residential and commercial spaces. The initial cost estimate does not include fund fees or related expenses.

The project's primary goal is to establish a closed-end real estate investment fund, with Al Majdiah contributing cash and serving as the development manager. Knowledge Economic City will contribute the project land, while Capital Hill will act as the fund manager, responsible for setting up and managing the fund after fulfilling all regulatory requirements and finalizing agreements.

The mixed-use development will span approximately 97,000 square meters of developable land within Knowledge Economic City. Initial plans call for around 2,700 residential apartments for sale, a commercial component with about 8,000 square meters of net leasable area, and over 3,500 parking spaces. According to the preliminary structure, Knowledge Economic City is projected to hold roughly 80% of the fund's rights, while Al Majdiah will own the remaining 20%.

Al Majdiah's total investment will amount to about 200.7 million riyals, including 89 million riyals for acquiring a stake in the land and 111.7 million riyals paid in cash to the fund according to the payment schedule detailed in the MoU.