Local developer Dar Al Majed Real Estate has announced a major investment partnership with Jadwa 47 Fund, managed by Jadwa Investment Company, for a significant mixed-use project in the Saudi capital.

The company confirmed the signing of an investment agreement, appointing Dar Al Majed Real Estate as the exclusive developer for the high-quality project. This development will span a total area of 8,087.96 square meters and will be built on King Salman Road in Riyadh, next to the SABB station.

The agreement structures the land contribution as an in-kind share in the fund, with an estimated value of approximately 259 million riyals. Dar Al Majed also holds an option to subscribe in cash to the fund units for up to 50 million riyals.

Initial estimates from the project study indicate that the total development cost is expected to reach about one billion riyals. The completed project will feature more than 350 residential units. Furthermore, it will incorporate significant commercial, administrative, and office spaces totalling an area exceeding 20,000 square meters. The final specifications will be confirmed once the technical studies are complete and all necessary regulatory licenses have been issued.

The developer is poised to receive a multi-part return structure from the venture. This includes 15% development fees, a 25% performance incentive, and a 2.5% sales commission. The company stands to gain additional investment returns should it exercise its option to contribute 50 million riyals in cash.

A separate development contract is slated for signing later, following the finalisation of the in-kind contribution requirements and the fund’s internal procedures. The company confirmed that there are no related parties involved in this specific agreement. The financial impact of the venture is anticipated to appear once the final fund structure is complete and the development phases commence.