Al Akaria Signs Contract to Develop Sidrat AlUla
The Saudi Real Estate Company, Al Akaria, signed a development management contract for the Sidrat AlUla project with the Royal Commission for Al Ula and Al Ula Development Company on February 25, reported Al Arabiya. The company clarified in a statement to Tadawul today, Monday, that the 5-year contract includes the comprehensive development of Sidrat AlUla project.
Sidrat AlUla
Covering an area of 260,23 thousand square meters, the project will include a total of 810 residential units, divided into 570 residential apartments and 240 residential villas. The overall master plan for the Sidrat AlUla project will also include commercial areas and various subdivisions. Moreover, there will be gardens and various other services.
The company explained that Al Akaria will determine the total development costs for the project within 120 days from signing the agreement. The company will manage the entire development stages of Sadrat AlUla project, including development management, marketing, sales, and leasing.
Moreover, it will charge a development management fee of 10% of the total development costs. In addition, there will be a fee of 2.5% of the total project sales (sales commission), and a fee of 10% of the rental income.
Al Aqiq Project
In a significant move, Al Akaria announced a strategic partnership with Marriott International.
This marks a substantial step in the hospitality sector of Saudi Arabia. This 25-year management and operation contract paves the way for a new luxury hotel in Riyadh’s Al-Aqiq project. Additionally, the hotel will be a distinguished member of Marriott’s Autograph Collection brand.
Contract Details
Al Akaria, in its disclosure to the Tadawul stock exchange, revealed that the contract’s financial terms are dynamic. Instead of a fixed sum, Marriott will earn management fees based on hotel revenues and a share of the operational profits. This innovative financial model is a pioneering approach in Riyadh’s real estate and hospitality market.
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