Riyadh - Mubasher: Sumou Real Estate Company penned an agreement with Saudi Downtown Company to develop and market a residential project in Al Khobar.
The project involves the construction of a high-rise residential tower on a land area totaling 4,827 square meters.
Under the terms of the 48-month contract, Saudi Downtown will provide the land as an in-kind contribution.
Sumou Real Estate has been appointed as the developer, executor, and marketer, responsible for partial investment and financing the remainder through off-plan sales revenues.
The financial structure of the agreement entitles Sumou Real Estate to a development management fee of 6.5% of total development costs, alongside marketing and sales fees representing 2% of total sales.
The company will receive 32% of the project’s net profits in exchange for its investment.
Sumou Real Estate expects the agreement to have a positive financial impact on its results once implementation begins. There are no related parties involved in the transaction.
Both sides recently signed a development agreement for mid-rise residential buildings on a land area of 28,346 square meters.
