First Avenue signs SAR 126M contract to sell commercial land, building

Logo of First Avenue for Real Estate Development Co. 

First Avenue for Real Estate Development Co. signed on Jan. 23 a contract to sell a commercial building and a land plot with La Perle Real Estate Fund at a total of SAR 125.96 million.

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The deal involves a 2,747-square-meter plot of land in the Al-Shatea neighborhood of Jeddah. The payment will be made through the issuance of investment units in the fund, equivalent to the agreed value, upon completion of the regulatory procedures, First Avenue said in a statement to Tadawul.

The financial impact of the capital gain from the deal, totaling SAR 19.5 million, will be reflected in 2025, the statement added, noting that there are no related parties involved.

This move aims to enhance the company's investments by contributing to the establishment of a real estate development fund, as previously announced. The company will manage the development of the fund's projects, which are expected to include other investments aligned with the company's development goals.

According to data from Argaam, First Avenue signed a non-binding letter of intent (LoI) with AWJ Real Estate Development and Investment Co. on Dec. 31, 2024, to establish a real estate fund.

The fund intends to purchase and develop commercial, office, and hotel projects. It plans to invest in four real estate assets: West La Perle, East La Perle, La Perle Residential Land and La Perle Hotel Land.