Sumou Real Estate signs development management deal for land in Al Khobar

Logo of Sumou Real Estate Co.

Sumou Real Estate Co. signed today, March 23, 2021, a development management agreement with Sumou Holding Co., a related party owning one-third of the 2.18 million square meter raw land in Corniche Al Khobar.

Under the agreement, Sumou Real Estate will manage and supervise the land development in return for fees at 8% of the project cost pro rata to Sumou Holding’s ownership in the land.

The fee will be paid quarterly, the company said in a bourse filing.

The contract term is approximately 30 months from the date of signing the contract.

The agreement will have a positive impact on the company’s results and revenues, starting H1 2021.