Asas Makeen signs pact to establish SAR 73.4M private real estate fund

Asas Makeen said the agreement includes establishing a fund to develop two land plots totaling nearly 3,834 square meters

Asas Makeen Real Estate Development and Investment Co. signed a framework agreement to establish a private real estate investment fund with MEFIC Capital, the fund manager, and Banaa Al-Tharawat Co., unit distributor, according to a Tadawul statement.

The fund, with an initial target size of nearly SAR 73.4 million, will develop the land owned by Asas Makeen in Al Hamra district, Riyadh.

The land value stands at SAR 30.67 million, excluding real estate transaction tax and brokerage fees.

Asas Makeen will contribute the land to the fund as an in-kind stake representing 30% of the land's value based on the agreed valuation, while the remaining portion will be paid in cash in accordance with the final sale and purchase agreement.

The agreement includes establishing a fund to develop two land plots totaling approximately 3,834 square meters.

Under the agreement, MEFIC Capital will establish the fund's investment structure, prepare its documentation, and complete the regulatory requirements. Banaa Al-Tharawat will be responsible for distributing the fund's units.

The agreement also stipulates a development fee equivalent to 10% of the total development cost and a brokerage fee of 2.5% of the land value, the statement said.

The fees will be determined in line with the final development agreement.

There are no related parties to the deal, Asas Makeen said.

The deal will remain in effect for 90 days from the signing date or until the completion of the fund's establishment procedures, whichever comes first, and may be extended by mutual written consent of the parties.

Asas Makeen expects the agreement to have a positive financial impact on its 2026 and 2027 results upon completion of the fund's establishment and the fulfillment of regulatory requirements.