Saudi Knowledge Economic City signs $693 million project deal with Alrashid Properties

en.Wedoany.com Reported - Knowledge Economic City (KEC) has signed an agreement with Saudi group Alrashid Properties to develop a premium mixed-use project named Multaqa Residences in Medina, covering an area of 149,520 square meters.

In a filing to the Saudi stock exchange Tadawul, KEC stated that under the agreement, KEC will retain land ownership and continue to act as the master developer, while Alrashid Properties will be responsible for the project's design, engineering, financing, construction, delivery, and maintenance. Upon completion, the project will include residential units, branded residences, commercial spaces, as well as hotel, retail, and hospitality assets. The project will be developed on the 149,520-square-meter site in accordance with off-plan sales regulations, subject to obtaining the required approvals and permits, and in compliance with all applicable laws and regulations.

The company estimated in the stock exchange filing that the project development cost is approximately $693.2 million, excluding land value, with total project revenue expected to reach around $1.33 billion. The entire project will be implemented over 54 months. Strategically located within KEC, the project is part of the Multaqa Al Madinah development on King Abdulaziz Road, adjacent to Multaqa Mall to the west, and directly connected to the Hilton hotel tower, Hilton branded residential tower, and the Multaqa Hospitality development, which includes JW Marriott, Marriott hotels, and branded residential units. Under the agreement, revenue exceeding the agreed baseline development cost will be distributed between the two companies through a profit-sharing mechanism, while revenue will be recognized in KEC's financial statements in accordance with International Financial Reporting Standards as the project progresses.