First Avenue inks deal to develop key Jeddah mixed-use project
JEDDAH, 20 days ago
Saudi-based First Avenue for Real Estate Development has announced that it has signed an agreement with Al Shati Real Estate Fund for the development of a mixed‑use project in Jeddah on a 15,619-sq-m area.
The project, which will boast of commercial, residential and hospitality elements, will be located in the Al Shati District of the Saudi port city, said First Avenue in its filing to Saudi bourse Tadawul.
The company holds units in Al Shati Real Estate Fund equivalent to 14.9% of the fund’s capital.
The entire project will be competed within a three-year period, it stated.
On the contract value, First Avenue said the development fee amounts to 12% of the actual project costs, which will be determined at a later stage upon approval of the final designs and issuance of the final permit.
The scope of work includes executing the project in accordance with the approved plans, which includes preparing architectural designs; securing regulatory permits; overseeing construction works and marketing the project.
This agreement represents a step within the company's expansion strategy in the city of Jeddah to invest in promising real estate opportunities within highly attractive and strategic locations, it stated.
On the financial impact, the First Avenue said the positive financial impact is expected to be reflected in its financial results starting from 2026.-TradeArabia News Service
