Sumou signs SAR 423.4M tower development contract in Makkah

Sumou Real Estate Co. said it signed a contract on Jan. 29 with Areeb Advanced Real Estate Co. to develop, design, and construct a residential and commercial tower for the Areeb Sumou Makkah Real Estate Fund.

The project will be built on a 3,066-square-meter plot in the Jabal Omar district of Makkah, with an initial contract value of SAR 423.4 million, excluding value-added tax (VAT), according to a statement to Tadawul.

Sumou will also receive development management fees equivalent to 10% of construction costs, excluding VAT.

The contract has a duration of 39 months, starting from the date the company is notified to commence development works. The related financial impact is expected to appear in the company’s results starting from the project execution.

The company said the contract does not involve any related parties.