Saudi Developers Launch $746 Million Mixed-Use Project in Madinah

Knowledge Economic City Company (KEC), Dar Al Majdiah Real Estate Co. (Al Majdiah), and Capital Hill Company have signed a memorandum of understanding (MoU) to establish a closed-ended real estate investment fund. This fund aims to develop a mixed-use project in Madinah. The project will cover a development area of 97,000 square metres and will include approximately 2,700 residential apartments, a net leasable area of roughly 8,000 square metres, and more than 3,500 parking spaces. The estimated total cost of the project is about 2.8 billion Saudi riyals ($746.25 million). KEC anticipates revenue exceeding SAR 4 billion and is primarily targeting non-Saudi Muslim buyers. As part of the agreement, KEC will contribute the project land as an in-kind contribution, while Al Majdiah will make a cash contribution and act as the investor and development manager. Capital Hill will establish and manage the proposed fund. KEC will hold approximately 80 percent of the fund, with Al Majdiah holding the remaining 20 percent. The project is subject to completing regulatory conditions, with binding commercial obligations emerging only upon execution of the final agreements.