Saudi Arabia's Medina Plans SAR 2.8 Billion Development of 2,700 Residential Units

en.Wedoany.com Reported - Knowledge Economic City, Dar Al Majed Real Estate Company, and Capital Hill Financial Company of Saudi Arabia have signed a memorandum of understanding to develop a new mixed residential and commercial project in the Knowledge Economic City in Medina. The project has approximately 97,000 square meters of developable land, with preliminary plans for about 2,700 residential apartments of various unit types, along with approximately 8,000 square meters of leasable ground-floor commercial space and more than 3,500 parking spaces. The total project cost is estimated at approximately SAR 2.8 billion.

The project is intended to be held and financed through a newly established closed-end real estate investment fund. Under the current commercial framework, Knowledge Economic City will contribute land as capital and hold an 80% stake in the fund, while Almajdiah will contribute cash and hold 20%, simultaneously serving as investor and development manager. Capital Hill will be responsible for establishing and managing the fund. The project land has a preliminary valuation of approximately SAR 875.4 million, of which Almajdiah plans to pay SAR 89 million in cash to Knowledge Economic City, with the remaining land value of approximately SAR 786.4 million reflected through fund shares.

According to the preliminary financial plan, the project is expected to generate more than SAR 4 billion in revenue. The residential portion will primarily exit through sales, while the ground-floor commercial properties are planned to be leased and operated first, then sold once stable operations are achieved. The project is located within the Knowledge Economic City area, adjacent to the Multaqa Al Madinah project. At this stage, the land, development scale, fund structure, development management entity, and preliminary investment amount have been finalized.