A Saudi-listed Investment Company, Ladun, has signed an investment agreement with Musharaka Capital.
The goal is to jointly establish a real estate development fund for a project within Jabal Omar development in Makkah at a total value of 1.45 billion Saudi riyals ($386 million).
Additionally, the five-year contract aims at investing in the establishment of a real estate development fund with a capital of SAR 525 million and obtaining the necessary regulatory approvals for its establishment through Musharaka Capital.
Musharaka is a company licensed by the Capital Market Authority, the company said in a statement to the Saudi stock exchange on Sunday.
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The fund aims to develop, market and construct a residential and hotel tower.
Under the agreement, a 3,881 square metre land plot in central Makkah will be acquired from Jabal Omar Development for SAR 659.88 million, excluding tax and brokerage fees.
Musharaka Capital, the fund manager, will be liable for providing the funding required for the project while Ladun will assume the role of the project developer, marketer, and implementer.
Ladun will contribute SAR 33 million to the fund from its own resources, the statement added.
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