03 May 2012
MAKKAH - The rent at the Jabal Omar Development project site has jumped to SR100,000 per square meter, Sheikh Abdul Rahman Fakih, chairman of board of directors of Jabal Omar Development Company, said Tuesday, a clear indicator of the resounding success of the project, he added.
Sheikh Fakih expected the number to rise in the future in light of the development pace Makkah has been witnessing recently in all economic fields.
Forty eight shops have been rented annually for total value of SR61 million, an amount that is three times the annual revenue projected in the feasibility study, he pointed out. The area of rented shops is 2,106 square meters, which constitutes 2.5 percent of the total area allocated for rent, he noted.
The first stage of the project will be completed in early 2013 and will consists of 10 hotels and 86 villas and residential units. The second stage will be completed in 24 months from now and consists of four hotels and 70 villas.
Regarding the cash flow and financing of the project, Sheikh Fakih said several local banks expressed desire to finance the project. Some SR7 billion were borrowed to implement the first stage of the project and SR1,490,000,000 were borrowed for the second stage.
Financing for the third stage was secured from the Ministry of Financing with a loan of SR3,000 million.
Sheikh Fakih said the electricity consumption in the project would not impact the overall performance of electricity in the Central Area of the Grand Mosque. An electricity station will be built near the location of the project to cover all its electric needs, and 90,000-meter-long high-voltage cables from the main electricity station west Makkah will link the station with the main one.
MAKKAH - The rent at the Jabal Omar Development project site has jumped to SR100,000 per square meter, Sheikh Abdul Rahman Fakih, chairman of board of directors of Jabal Omar Development Company, said Tuesday, a clear indicator of the resounding success of the project, he added.
Sheikh Fakih expected the number to rise in the future in light of the development pace Makkah has been witnessing recently in all economic fields.
Forty eight shops have been rented annually for total value of SR61 million, an amount that is three times the annual revenue projected in the feasibility study, he pointed out. The area of rented shops is 2,106 square meters, which constitutes 2.5 percent of the total area allocated for rent, he noted.
The first stage of the project will be completed in early 2013 and will consists of 10 hotels and 86 villas and residential units. The second stage will be completed in 24 months from now and consists of four hotels and 70 villas.
Regarding the cash flow and financing of the project, Sheikh Fakih said several local banks expressed desire to finance the project. Some SR7 billion were borrowed to implement the first stage of the project and SR1,490,000,000 were borrowed for the second stage.
Financing for the third stage was secured from the Ministry of Financing with a loan of SR3,000 million.
Sheikh Fakih said the electricity consumption in the project would not impact the overall performance of electricity in the Central Area of the Grand Mosque. An electricity station will be built near the location of the project to cover all its electric needs, and 90,000-meter-long high-voltage cables from the main electricity station west Makkah will link the station with the main one.
© The Saudi Gazette 2012
