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Saudi-listed Ladun Investment Company announced on Wednesday that its consortium with Al-Ayuni Investment and Contracting Company has signed a framework agreement with the Royal Commission for Makkah City and Holy Sites for the Khalidiyah Informal Settlement Redevelopment Project in Makkah
The consortium, in which both companies own equal stakes, was awarded the project at the end of May 2026.
Under the agreement, the consortium will establish a real estate investment fund with a capital of not less than 4 billion Saudi riyals ($1.07 billion), Ladun said in a stock exchange filing.
The fund will acquire the project land through the transfer of ownership by the Royal Commission in favour of the fund for the purpose of planning and developing the project's infrastructure. It will undertake execution of infrastructure works, subdivision of project land into plots, facilitate their sale by the project’s developer, who will also serve as the project’s marketer, and oversee the exit strategy.
The fund will have a five-year term from its commencement date, with an option to extend for two additional one-year periods, the statement said, adding that it will have a positive impact on Ladun’s profitability from 2027 until the end of the fund's term.
The scope of the redevelopment project includes preparing the detailed master plan and engineering designs, implementing road, water, sewage, electricity, and telecommunications networks, designing public spaces and parks, carrying out utility connection and coordination works, and ensuring that the land plots are fully serviced and infrastructure-ready for delivery to customers.
The project’s targeted sales value exceeds SAR6 billion ($1.6 billion), the company had said in its May 2026 statement.
The project will be implemented in coordination with several government and utility entities, including Makkah Municipality, National Water Company (NWC), Saudi Electricity Company, Real Estate General Authority, the Off-Plan Sales Programme (Wafi), and telecommunication and other service providers
(Writing by SA Kader; Editing by Anoop Menon)
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