Asas Makeen signs SAR 300M construction deal for Riyadh projects

Asas Makeen Real Estate Development and Investment Co. said it signed a contract with Tashied Hayat Contracting Co. to carry out construction work on several of its projects in Riyadh, with a total value of nearly SAR 300 million, excluding value-added tax.

In a statement to Tadawul, the company said the agreement is based on a cost-plus model with a 5% fee, and the final contract value will be determined based on actual costs upon completion of the projects.

The land area to be developed totals about 65,000 square meters, the company added.

The contract covers comprehensive construction work for residential and commercial developments, in line with approved technical specifications, quality and safety standards, and includes guarantees for proper execution and latent defects. The projects will be implemented according to approved timelines.

The contract, awarded and signed on Dec. 29, has a term of 18 months.

The company disclosed that Chairman Abdulrahman Al-Hadlaq and Vice Chairman Anas Al-Hadlaq are related parties, adding that the transaction falls within the company’s normal course of business and does not grant any preferential advantages.

Asas Makeen expects the contract to impact its financial results during the execution period, though the extent of the impact will depend on the volume of work and actual costs incurred.

The company added that the transaction aligns with its strategy to expand its residential and commercial real estate portfolio, in accordance with the approved technical specifications and on a turnkey basis.