Umm Al Qura for Development and Construction Company has signed a non-binding tripartite memorandum of understanding to set up a 1.4 billion Saudi riyals ($373.29 million) real estate private fund.

The MoU was signed with Aljazira Capital and Naif Alrajhi Investment, the developer of the Masar destination, a mixed-use development in Makkah, said in a statement to the Saudi stock exchange on Tuesday.

According to the MoU, Aljazira Capital will serve as the fund manager, while Naif Alrajhi Investment will act as the developer.

Moreover, Umm Al Qura will offer the land plots as an in-kind contribution, while the developer will contribute both cash and in-kind contributions to the fund.

The fund aims to develop hospitality, residential, and commercial units on two land plots within the Masar destination. No project details were given.

The MoU is valid for six months from the date of signing or until the completion of the fund’s establishment, whichever comes first, the statement said.  

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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