Salman bin Saedan Group bags JAZADCO contract to build housing project

Jazan Energy and Development Co. (JAZADCO) has signed on Monday a partnership and development deal with Salman Abdullah bin Saedan Group for Real Estate Development (SABS) to develop its housing project in Jazan, the energy firm said in a statement to Tadawul.

The project’s total cost is estimated at SAR 546 million, and will be funded by JAZADCO.

Under the agreement, SABS will market and build residential units over 98,000 square meters according to the housing ministry’s requirements, through setting up REIT Funds licensed by the Capital Market Authority (CMA).

The land was valuated at SAR 73.5 million, while its book value stands at SAR 27.6 million, achieving a profit of SAR 45.9 million.  

In addition, other returns of investment worth SAR 33 million will be added to the land money, totaling to SAR 78.9 million, and the remaining funds will be obtained from the REIT Funds. The investment duration is estimated to be around 36 months.

This deal has no related parties, the statement said.

The project comes as part of the company’s strategic plan to serve the Kingdom’s real  estate sector, as per Vision 2030 and the National Transformation Program, which encourage building suitable housing projects to all citizens.

The financial impact of this project will be disclosed at a later date, as well as the project’s expected start and finish dates, the statement added.