First Avenue, Al Shati Real Estate Fund tie-up for mixed-use project in Jeddah

First Avenue for Real Estate Development Co. signed today, Aug. 6, a contract with Al Shati Real Estate Fund for the development of a mixed-use project spanning 15,619 square meters in Al Shati District, Jeddah.

In a statement to Tadawul, the Saudi-listed company said the project will comprise commercial, residential, and hospitality units.

The contract runs for 36 months from the date of the construction license issuance. The development fee amounts to 12% of the actual project costs, which will be determined at a later stage upon the approval of the final designs and the final permit’s issuance.

The scope of work covers project execution based on the approved plans, including handling architectural designs, securing regulatory permits, overseeing construction activities and public marketing.

This agreement represents a step within the company's expansion strategy in the city of Jeddah to invest in promising real estate opportunities within highly attractive and strategic locations.

Given the significance and materiality of this event, the company was keen to disclose the signing of the agreement, despite the estimated project value not being determined at this stage due to the final designs not yet being completed and the regulatory permits not yet issued by the relevant authorities as of the contract signing date.

In accordance with the agreement, the estimated value of the project will be determined at a later stage, once the final designs are approved and the required permits are obtained from the relevant authorities.

First Avenue holds units in Al Shati Real Estate Fund, equivalent to 14.9% of the fund’s capital.