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Logo of Knowledge Economic City Co.
Knowledge Economic City Co. signed, on April 4, two contracts with ElKhereiji Commerce & Contracting Co. at a total value of SAR 288.63 million, excluding value-added tax (VAT).
In two separate statements to Tadawul, the company said that the first contract includes implementing all contracting work for four residential buildings, with 132 residential units of various sizes, as part of the first phase of residential buildings of Al-Alya mixed-use project at a value of SAR 117.5 million, excluding VAT.
The new contract brings the total number of residential buildings to 12, offering 396 apartments assigned to ElKhereiji within the first phase of the project.
Meanwhile, the second contract is for the electromechanical, finishing, and landscaping works for a group of eight residential buildings, providing 264 residential apartments, currently being implemented within the first phase of Al-Alya project at a value of SAR 171.3 million, excluding VAT.
The duration of the first contract is for 24 months, starting from the issuance of the construction permits and the second contract is for 20 months, beginning on May 5, 2024.
The company will pay the contractor’s dues in installments on a monthly payment certificate based on work progress. Accordingly, the financial impact will lead to cash outflow for the amount payable to the contractor for 24 months for the first project and 20 months starting from the end of May 2024 for the second project. There are no related parties to the contracts.
Al-Alya is one of the main projects in the Knowledge Economic City. The gated complex includes hospitality, housing, offices, retail, and education components. The project is designed to respond to the quality-of-life program that relies on green areas and pedestrian walkways to meet Vision 2030 objectives.
The project is being developed in the area overlooking Safwan Street on a 269,000-square-meters land bank divided into plots of different sizes. The epicentre of the project houses a nearly 60,000-square-meters garden, which is separated from vehicular traffic to encourage walking, including full access for people with special needs.
The project includes two groups of offices designed with flexible workspaces to encourage work and innovation. These areas are linked to hotels and residences overlooking a kilometre-long park, serviced apartments, and residences equipped with smart home technology. It is linked to other phases to form a continuous series of gardens, open spaces, and pedestrian paths within open artistic treatments of Islamic arts and heritage.
The project also houses a 4-star hotel with 130 room keys managed by the Hyatt International Group under the Hyatt Centric brand. It also includes 4-star hotel apartments with 420 apartments managed by the Hyatt International Group.
The development includes serviced apartments with 420 units managed by the company, and approximately 1,000 apartments available for sale through the off-plan sales system under the supervision of the Economic Cities and Special Zones Authority (ECZA). The project also contains 70 connected villas, commercial spaces, a large mosque, and a nursery.
The concrete structure of 264 residential apartments is currently being executed by the contractor, ElKhereiji Commerce & Contracting, with the electromechanical, finishing, landscaping, and site work for the same units being assigned to the same contractor.
The new contract for 132 apartments will bring the total to 396 housing units, which will be available for sale through the off-plan sales system licensed by the ECZA. The site works for the hotel and hotel apartments area are ongoing, and contracting works are being arranged in preparation for the award, the statement added.
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