Knowledge City signs SAR 506.6 mln contract with Alsaad Contracting

Logo of Knowledge Economic City Co. (KEC) 

Knowledge Economic City Co. (KEC) signed today, June 21, a contract worth SAR 506.61 million, exclusive of VAT, with Alsaad General Contracting Co. for the execution of electromechanical and finishes works at KEC Hub mall project, previously called Wasat Almdinah.

In a statement to Tadawul, KEC stated that the works include electrical networks (different voltages), communications, panelboards, lighting, control systems, and alarm systems. They also include lifts, elevators and escalators, HVAC systems, piping for water supply and drainage, as well as insulation, sanitary works, and all types of finishing works which comprise aluminum, elevations, facades works.

The project will last 22 and a half months, the company said, adding that the contractor dues will be paid in monthly installments based on work progress.

Accordingly, the financial impact is represented in cash outflow for the amount payable to the contractor over the project period.

The project is located in the northern part of KEC development over 450 meters on King Abdul-Aziz Highway. Phase I, which is being executed by Alsaad Contracting. It consists of a shopping mall, a five-star Hilton Hotel tower comprising 350 rooms, and a branded residences tower including 64 residential units, which are directly linked to the hotel, the boulevard and the shopping mall.  

The project provides hospitality, residence, shopping and entertainment facilities for Madinah residents and visitors through all the necessary services and amenities from shopping centers, boulevard, coffee shops, restaurants, heritage zone as well public places and gardens.  

The project is being built on 65,000 square meters (sqm) including many types of facilities and entertainment. 

The project is financed through a credit facility worth SAR 782 million, secured equally from the Tourism Development Fund and Riyad Bank. 

Leasing agreements were also signed with tenants on the shopping mall and other sparts of the project. Letters of interest were equally signed with potential tenants through specialized consultants in the commercial and investment fields. It is planned to complete KEC Hub project phase (mall, hotel and branded residences) by 2025. 

Phases II and III will cover 186,000 sqm with a leasing area of 122,000 sqm.