Sumou Real Estate Co.headquarters
Sumou Real Estate Co. announced on Jan. 27 that AlJazira Capital and Sumou signed an agreement to set up a real estate fund, with an aim to develop a high-quality real estate project. 
The project encompasses a 414,320 square meter plot of land and is expected to deliver over 800 residential units.
For more news and details on the projects
According to a statement to Tadawul, the fund will also acquire land owned by Sumo in the cities of Dammam and Al Khobar, with the total value exceeding SAR 2 billion. Sumo was appointed as the project developer in exchange for a development management fee amounting to 10% of the development costs.
The company clarified that the fund will pay for the land owned by Sumo, valued at SAR 90.7 million, in-kind, with 78% of the payment made through the issuance of in-kind units in the fund, totaling 7.05 million investment units worth SAR 70.45 million, at a nominal value of SAR 10 per unit. This will be done after completing the necessary regulatory procedures to establish the fund.
The remaining balance of SAR 20.22 million (22% of the total) will be paid in cash by the fund, via a certified check to Sumo, to be delivered upon completion of the process.
Furthermore, Sumo will hold a 26.2% equity stake in the fund, which represents the development management fee, in addition to the aforementioned in-kind payment.
The four-year contract is expected to positively impact the company’s financials starting from the establishment of the fund.
The agreement involves related parties, including Sumo International Investment Co.
Sumou Real Estate Co.headquarters
Sumou Real Estate Co. announced on Jan. 27 that AlJazira Capital and Sumou signed an agreement to set up a real estate fund, with an aim to develop a high-quality real estate project.
The project encompasses a 414,320 square meter plot of land and is expected to deliver over 800 residential units.
For more news and details on the projects
According to a statement to Tadawul, the fund will also acquire land owned by Sumo in the cities of Dammam and Al Khobar, with the total value exceeding SAR 2 billion. Sumo was appointed as the project developer in exchange for a development management fee amounting to 10% of the development costs.
The company clarified that the fund will pay for the land owned by Sumo, valued at SAR 90.7 million, in-kind, with 78% of the payment made through the issuance of in-kind units in the fund, totaling 7.05 million investment units worth SAR 70.45 million, at a nominal value of SAR 10 per unit. This will be done after completing the necessary regulatory procedures to establish the fund.
The remaining balance of SAR 20.22 million (22% of the total) will be paid in cash by the fund, via a certified check to Sumo, to be delivered upon completion of the process.
Furthermore, Sumo will hold a 26.2% equity stake in the fund, which represents the development management fee, in addition to the aforementioned in-kind payment.
The four-year contract is expected to positively impact the company’s financials starting from the establishment of the fund.
The agreement involves related parties, including Sumo International Investment Co.
