Arab News, Mon, Apr 15, 2024 | Shawwal 5, 1445
Saudi master developer KEC inks 2 deals worth $78m for Al-Alya project
Saudi Arabia:
Saudi master developer Knowledge Economic City Co. has signed two deals to
deliver 396 residential apartments within the first phase of its mixed-use
project Al-Alya.
In Tadawul filings, the listed firm announced the
deals with Elkhereiji Commerce and Contracting Co., worth SR288.6 million
($77.92 million).
The first agreement entails fully implementing
contracting works for additional residential buildings in the first phase of the
Al-Alya mixed-use project. This comprises a group of four houses, offering 132
apartments of different sizes valued at SR117.5 million, excluding value-added
tax.
The second contract involves the implementation of
electromechanical, finishing, gardening, and site coordination works for a group
of eight residential buildings valued at SR171.13 million, providing 264
apartments, the company said in a statement to Tadawul.
Based on work progress, both contracts will be
paid in installments per monthly payment certificate.
The company commented on the second deal, saying:
“Accordingly, the financial impact is represented in the cash outflow for the
amount payable to the contractor over a period of 20 months starting from the
end of May 2024.”
The firm said that the financial impact of the
first agreement is represented in the cash outflow for the amount payable to the
contractor over a period of 24 months.
Al-Alya is one of the main projects in the
Knowledge Economic City and represents a project with mixed-use components
within a gated complex compound that combines hospitality, housing and offices
as well as retail and education services.
It was designed to respond to the urban trend of
humanizing cities and the quality-of-life program that relies on green areas and
pedestrian walkways to create a style and vibrancy that meets the Kingdom’s
Vision 2030.
The project aims to enable local and foreign
companies, businessmen, and digital entrepreneurs to work in Madinah.
In October last year, Knowledge Economic City Co.
signed an agreement with Gulf International Bank Capital for SR3.5 billion to
establish a real estate investment fund.
The initiative is poised to launch the initial
phase of the Islamic World District in Madinah and will span over 140,000 sq.
meters, transforming the area into a mixed-use development.
The site will include hospitality, residential,
retail, entertainment, and cultural zones, providing over 5,000 hotel keys, 743
residential apartments, plus a designated area of 24,000 sq. m. for retail
shops.
GIB Capital is a subsidiary of Gulf International
Bank, owned by the governments of the Gulf Cooperation Council, in which Saudi
Arabia’s Public Investment Fund holds a 97.2 percent stake, according to the
bank’s 2022 annual report.
The project aims to enhance the visitor experience
in Madinah, a city that holds historical significance as the first capital of
Islamic civilization and a destination that draws millions of pilgrims and
tourists annually.