Masar Destination, Makkah Construction and Al Rajhi Real Estate Union sign framework agreements for Western and Southern Hindawiyah projects

Umm Al Qura for Development and Construction announced the signing of framework agreements for the development of the Western Hindawiyah and Southern Hindawiyah areas in Makkah.

In a statement to Tadawul, the company said the agreements were signed on June 24, between the Royal Commission for Makkah City and Holy Sites and the consortium members.

The consortium comprises Umm Al Qura for Development and Construction, Makkah Construction and Development Co. and Al Rajhi Real Estate Union Co..

The agreements mainly include key terms and conditions for the project development, and procedures for structuring the fund and appointing the fund manager.

It also stipulates for the appointment of Umm Al Qura for Development and Construction as the project’s exclusive developer and marketer.

The company said the framework agreements form part of the regulatory and contractual requirements related to the previously announced project awards. It added that the financial impact cannot be determined at this stage and that any material developments will be announced in due course.

According to Argaam data, Umm Al Qura for Development and Construction and Makkah Construction and Development earlier this month received two award notices from the Royal Commission for Makkah City and Holy Sites to develop the Western Hindawiyah and Southern Hindawiyah areas adjacent to the Masar Destination project.

The two sites have a combined area of 1.15 million square meters, including 841,300 square meters for Western Hindawiyah and 308,300 square meters for Southern Hindawiyah. The projects will be developed through a real estate investment fund managed by a company licensed by the Capital Market Authority.

The project’s initial cost is estimated at approximately SAR 6 billion. The award was granted on May 31.