Logo ofSumou Real Estate Co.andLogo of Kingdom Holding Co. (KHC)
Sumou Real Estate Co. and Kingdom Holding Co. (KHC) signed an agreement for the management of infrastructure development, as well as the marketing and sale of residential and commercial land located in Riyadh, with a total area of 3.07 million square meters. The agreement is for the benefit of Kingdom Company for Real Estate Development and Trade Center Co. Ltd., both subsidiaries of Kingdom Holding. 
In separate statements to Tadawul, the two companies said that Sumou will receive 6.5% of the total infrastructure development costs as fees for managing development works, in addition to 2.5% of total project sales as marketing and sales management fees, as well as brokerage commissions paid by buyers.
The contract extends for 36 months, starting from the date of approval of the plans by the relevant official authorities, with the possibility of extension in cases of force majeure or delays not attributable to the development manager.
Kingdom Holding stated that Sumou has been appointed as the exclusive development manager for the project, with a scope of work that includes preparing development plans and timelines, obtaining the necessary regulatory approvals, managing the design and execution of infrastructure works, supervising contractors and consultants, and marketing and selling the developed land plots.
The execution of development works will be subject to the approved budgets and timelines, under the supervision of a consultant to be appointed by the landowners. Sumou will also provide the required performance guarantees in line with the agreement terms.
Kingdom Holding estimated that the project could generate total sales of approximately SAR 4 billion, noting that this remains subject to prevailing market conditions at the time of execution. The financial impact is expected to be recognized gradually over the project’s implementation period, through the capitalization of infrastructure development costs within the two subsidiaries, and the recognition of development management fees and sales proceeds in line with applicable International Financial Reporting Standards (IFRS) and key project milestones.
Sumou indicated that the project is expected to have a positive impact on its financial results as of the start of execution.
It is worth noting that Kingdom Company for Real Estate Development is a wholly owned subsidiary of Kingdom Holding, while Trade Center Co. Ltd. is 89.8% owned by Kingdom Holding.
Logo ofSumou Real Estate Co.andLogo of Kingdom Holding Co. (KHC)
Sumou Real Estate Co. and Kingdom Holding Co. (KHC) signed an agreement for the management of infrastructure development, as well as the marketing and sale of residential and commercial land located in Riyadh, with a total area of 3.07 million square meters. The agreement is for the benefit of Kingdom Company for Real Estate Development and Trade Center Co. Ltd., both subsidiaries of Kingdom Holding.
In separate statements to Tadawul, the two companies said that Sumou will receive 6.5% of the total infrastructure development costs as fees for managing development works, in addition to 2.5% of total project sales as marketing and sales management fees, as well as brokerage commissions paid by buyers.
The contract extends for 36 months, starting from the date of approval of the plans by the relevant official authorities, with the possibility of extension in cases of force majeure or delays not attributable to the development manager.
Kingdom Holding stated that Sumou has been appointed as the exclusive development manager for the project, with a scope of work that includes preparing development plans and timelines, obtaining the necessary regulatory approvals, managing the design and execution of infrastructure works, supervising contractors and consultants, and marketing and selling the developed land plots.
The execution of development works will be subject to the approved budgets and timelines, under the supervision of a consultant to be appointed by the landowners. Sumou will also provide the required performance guarantees in line with the agreement terms.
Kingdom Holding estimated that the project could generate total sales of approximately SAR 4 billion, noting that this remains subject to prevailing market conditions at the time of execution. The financial impact is expected to be recognized gradually over the project’s implementation period, through the capitalization of infrastructure development costs within the two subsidiaries, and the recognition of development management fees and sales proceeds in line with applicable International Financial Reporting Standards (IFRS) and key project milestones.
Sumou indicated that the project is expected to have a positive impact on its financial results as of the start of execution.
It is worth noting that Kingdom Company for Real Estate Development is a wholly owned subsidiary of Kingdom Holding, while Trade Center Co. Ltd. is 89.8% owned by Kingdom Holding.
