Saudi-listed Ladun Investment Company announced on Monday that a consortium comprising the company and Al-Ayuni Investment and Contracting Company has been awarded the Khalidiyah Informal Settlement Redevelopment Project in Makkah by the Royal Commission for Makkah City and Holy Sites.

The project’s targeted sales value exceeds SAR6 billion ($1.6 billion), the company said in a stock exchange statement.

The consortium will establish a closed-ended private real estate investment fund in accordance with Capital Market Authority (CMA) regulations.

The fund will drive 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 scope of contract 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 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

The statement didn’t disclose a timeline for completion.

(Writing by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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