Sumou Real Estate Company has signed a long-term lease, development, and operation contract with Saudi Airlines Real Estate Development Company (SARED) to build a mixed-use project in Jeddah.

The lease for the 78,374-square-metre (sqm) land plot will extend for 35 years, the company said in a statement to the Saudi stock exchange on Tuesday.

The contract term will start from the date of the building permit issuance or 18 months after signing, whichever comes first.
 
The annual rent will be 11.76 million Saudi riyals ($3.13 million), excluding value-added tax, with an average increase of 21 percent over each five-year lease.  

No details were disclosed on the mixed-use development.

SARED handles the management of Saudi Arabian Airlines properties within and outside the Kingdom.

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

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