Knowledge Economic City advances SAR2.8bn Madinah development

Knowledge Economic City Company has signed a memorandum of understanding with Almajdiah Real Estate and Capital Hill to develop a major residential and commercial project in Madinah.

The proposed development will occupy approximately 97,000 square metres of land near Multaqa Al Madinah. Initial plans include about 2,700 apartments, 8,000 square metres of leasable commercial space and more than 3,500 parking spaces.

Development costs are provisionally estimated at SAR2.8 billion ($747 million), excluding fund fees and associated expenses. Expected revenue exceeds SAR4 billion.

The partners plan to finance and own the development through a closed-ended real estate investment fund. Knowledge Economic City is expected to hold 80% of the fund, with Almajdiah holding the remaining 20%. Capital Hill will establish and manage the fund, subject to regulatory approvals and definitive agreements.

The development could generate substantial opportunities in masterplanning, architecture, engineering, project management, construction, building systems, landscaping and residential supply chains.

Sources: Knowledge Economic City, Argaam, Saudi Gulf Projects.