Asas Makeen Signs Framework Agreement to Launch SAR 73 Million Real Estate Fund

08/07/2026 07:03 AST

Asas Makeen Real Estate Development and Investment Company has announced the signing of a framework agreement with Middle East Financial Investment Company (MEFIC Capital), acting as fund manager, and Binaa Altharawat Financial Investment Company, serving as distributor, to establish a private real estate investment fund.

The fund, with an initial target size of approximately SAR 73.4 million, will be dedicated to developing land owned by Asas Makeen in Riyadh's Al Hamra District. The project covers two plots of land totaling 3,834 square meters.

Under the agreement, MEFIC Capital will structure the fund, prepare documentation, and complete regulatory requirements, while Binaa Altharawat will handle the distribution of fund units. Asas Makeen will participate through an in-kind contribution representing 30 percent of the land value, estimated at SAR 30.7 million, with the remainder to be settled in cash under the final sale and purchase agreement.

The framework also stipulates that development fees will equal 10 percent of total costs, while brokerage fees will be set at 2.5 percent of the land value. Final entitlements and mechanisms will be determined in subsequent agreements.

The contract, signed on July 7, 2026 (1448/01/22H), will remain valid for 90 days or until the fund establishment procedures are completed, with the option for extension by mutual agreement.

Financial impact from the project is expected to positively reflect on Asas Makeen's results during 2026 and 2027, in line with the progress of development works and regulatory approvals.

The company emphasized that this is a framework agreement, setting preliminary principles for cooperation. Final details regarding land transfer, development works, and entitlement mechanisms will be disclosed once the fund is formally established.

Asas Makeen confirmed that no related parties are involved and pledged to update shareholders on any material developments in accordance with disclosure regulations.

Borsatalkhaleej