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

Al Majdiah Real Estate has signed a memorandum of understanding with Knowledge Economic City and Capital Hill to develop a residential and commercial real estate project in Knowledge Economic City, Madinah. The initial total cost of the project is estimated at 2.8 billion riyals (SAR), excluding fund fees and related costs.

The parties plan to execute the project through a closed-end real estate investment fund. Knowledge Economic City will contribute the project land as an in-kind share, while Al Majdiah will contribute cash and serve as development manager. Capital Hill, as fund manager, will establish and manage the proposed fund after completing regulatory requirements and final agreements.

The memorandum of understanding aims to set a general framework for cooperation to develop a mixed-use real estate project in Knowledge Economic City, Madinah, on a developable land area of about 97,000 square meters. According to the initial plan, the project will include around 2,700 residential apartments for sale, a commercial component with a net leasable area of about 8,000 square meters, and more than 3,500 parking spaces.

Under the preliminary structure, Knowledge Economic City is expected to hold approximately 80% of the fund's rights, with Al Majdiah holding 20%. Al Majdiah's total contribution will be about 200.7 million riyals, including 89 million riyals for acquiring a corresponding share in the land and 111.7 million riyals to be paid in cash to the fund according to the payment schedule outlined in the memorandum.