Saudi Arabia’s Retal Urban Development has signed an agreement worth SR339.5m ($90.5m) with the Public Investment Fund-backed (PIF) Roshn Real Estate to purchase 372 plots within the Sedra masterplanned community in Riyadh.
Roshn informed the Saudi Stock Exchange (Tadawul), where it is listed, that it plans to develop the land plots according to Roshn’s guidelines for Sedra.
The transaction has been partially funded by Retal’s bank facilities and partly through proceeds it received from off-plan sales.
The agreement is expected to directly impact Retal’s financials between 2022 and 2024.
Retal was established in 2012 and, as of September, its portfolio comprised more than 30 completed and ongoing projects with a total of over 7,000 units, of which about 2,957 units were completed by June in Riyadh, Jeddah and the Eastern Province.
Roshn has the backing of the Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, and launched Sedra in August.
The project is masterplanned to include 30,000 homes across eight phases, and is located north of Riyadh, close to Princess Nourah Bint Abdul Rahman University and south of King Khalid International airport.
ANALYSIS: Gulf real estate renews project activity
The PIF-backed developer signed an agreement with Retal in December, as part of which the company will build 103 villas and townhouses within the first phase of Sedra.
Retal’s and Roshn’s new agreement is the latest sub-development deal signed for Sedra. Saudi Real Estate Company (Al-Akaria) told the bourse earlier in June it has signed an agreement to purchase plot packages K1 and K2 within Sedra.
The SR141.9m ($37.8m) transaction is exclusive of the real estate transaction tax and its terms include the development of a combined 155 plots.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.