Ladun embarks on new type of projects; Built to sign Abha deal

Hassan Alhazmi, CEO of Ladun Investment Co.

Hassan Alhazmi, CEO of Ladun Investment Co., highlighted the significant progress in Saudi Arabia’s real estate development sector, attributing it to efforts by the Ministry of Municipalities Rural Affairs and Housing (MOMRAH), the National Housing Company (NHC), and the Real Estate General Authority (REGA).

He noted that Luden started implementing new types of projects.

Speaking with Argaam during the Cityscape Global 2024 conference, Alhazmi announced Luden’s agreement with Al-Musharaka Capital to acquire Jabal Omar land valued at over SAR 600 million, with total project investments exceeding SAR 1.45 billion.

He also disclosed a 30% partnership deal with Mawten Real Estate Co. for land near the Haramain Station in Makkah, involving investments surpassing SAR 840 million. Alhazmi referenced a prior agreement with Cheval Collection to develop a King Fahd Road property, with more than SAR 300 million in investments.

The company aims to deliver high-quality projects requiring significant execution capabilities and capital. Collaboration with financial institutions is in progress to align new offerings with market demands, particularly in Riyadh and Makkah, where new projects have been announced.

Alhazmi noted the real estate sector’s maturity and rising professionalism, with more firms enhancing exhibition quality and investment types. He highlighted Riyadh’s price increases driven by high demand and limited supply growth, while northern Riyadh's development is expected to ease market imbalances.

Luden plans to increase Built Industrial Co.'s capital to SAR 100 million ahead of a public listing. Fully owned by Luden, Built Industrial oversees several factories, with expansion aimed at controlling the real estate value chain for on-time, cost-effective project delivery.

Built Industrial recently secured contracts worth nearly SAR 3 billion and serves as the main contractor for The Point project in Abha, valued at SAR 640 million, signed with the Red Sea Co. and the Industrial Fund during the conference.

Luden also raised Painite Operations and Maintenance Co’s capital, its facilities management arm, to SAR 10 million to enhance post-sale and operational services along the value chain.

Alhazmi said expanding Banet and Built strengthens their business model.

Luden focuses on sustainability by balancing short-term investor returns through dividends and long-term growth in revenue, profit, and subsidiary capital.

The board approved moving to the main market, appointing Al Rajhi Capital as an advisor, with steps underway for the transition.