Saudi Arabia’s State Properties General Authority (SPGA) announced on Tuesday the launch of a prequalification invitation for private sector developers and investors for a Transit-Oriented Development (TOD) project in Makkah.
The Authority said on its website that the TOD project involves the development of mixed-use assets on a 167,000-square metre plot of land in Al Hajlah district, approximately 300 meters from the Grand Mosque and adjacent to the Makkah Clock Tower.
The project’s key components include a bus station, TOD retail units, street and lifestyle retail units, and a 400-key four-star hotel adding up to a total build-up area of approximately 254,158 square metres.
The land would be provided on lease basis for an indicative period of 25 years with the private sector responsible for design, development and operation of the project.
SPGA said the project would be developed in coordination with the Royal Commission of Makkah City and the Holy Sites (RCMC).
The project cost has been estimated at 1.5 billion to 2 billion Saudi riyals ($399 million - $532 million).
PwC is the financial and lead advisor and SALFO Engineering and Management is the technical advisor for the TOD project.
The submission deadline for qualification applications is 1 December 2022.
The Request for Proposal is expected to be issued on 22 December 2022 with a submission deadline of 13 April 2023. The project is expected to achieve commercial close by June 2023, according to details shared by SPGA on its twitter account and website.
(Writing by Senthil Palanisamy; Editing by Anoop Menon)