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Saudi stock exchange-listed First Avenue for Real Estate Development Company has signed a development agreement with North Star Real Estate Fund, managed by Dinar Investment Company, to deliver a mixed-use project in Riyadh.
The project will be developed on a 10,442.8 square metre land plot in the Al Arid District, First Avenue said in a stock exchange disclosure.
The project is located on King Abdulaziz Road, a key arterial corridor linking northern and southern Riyadh. It is also close to major transport routes including King Fahd Road and Abu Bakr Al-Siddiq Road.
The development cost is estimated at around 83 million Saudi riyals (excluding VAT), with the final figure to be confirmed following completion of detailed design studies, the disclosure said.
Under the agreement, First Avenue will receive a development fee of 13 percent of actual project costs.
The scope of work covers detailed design, supervision of construction works and marketing of the project.
Timeline
The contract duration is 24 months from completion of approved design drawings. The company expects the financial impact to be reflected from the first half of 2027.
The agreement forms part of First Avenue’s ‘Tanmiah’ programme, which aims to develop and invest in promising real estate opportunities in strategic locations with high value addition.
(Writing by SA Kader; Editing by Anoop Menon)
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