Riyadh – Mubasher: Sumou Real Estate Company has penned an agreement with Saudi Downtown Company, a wholly owned subsidiary of the Public Investment Fund (PIF), for a project spanning 28,292 square meters, according to a bourse disclosure.
The listed company will manage the development, marketing, and sale of a residential project located south of the Boulevard in Al Khobar Downtown development.
Under the terms of the 48-month contract, Sumou Real Estate will construct mid-rise residential buildings.
Downtown Company’s contribution is an in-kind land investment, while Sumou Real Estate will provide partial investment and finance the remaining costs through off-plan sales proceeds.
Sumou Real Estate is entitled to a development management fee of 6.50% of the total development costs, alongside marketing and sales fees totaling 2% of gross sales.
Additionally, the listed company will receive a 32% share 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, adding that there are no related parties involved in the transaction.
The listed entity announced two other agreements with the PIF subsidiary for Al Khobar project.
