SAR 2.8bn Madinah Residential Project Deal Signed

A memorandum of understanding has been signed in Madinah to develop a mixed-use residential and commercial project with an initial estimated total cost of SAR 2.8 billion, excluding fund fees and related costs. The project is planned within Knowledge Economic City in Madinah.

the development will span about 97,000 m² and include around 2,700 residential apartments for sale, a commercial component with net leasable area of roughly 8,000 m², and more than 3,500 parking spaces.

Knowledge Economic City is expected to contribute the land as an in-kind share and hold about 80% of the fund's rights. Almajdiah Real Estate is expected to hold around 20% and act as development manager, with a total expected contribution of about SAR 200.7 million — including SAR 89 million to acquire a corresponding share in the land and SAR 111.7 million to be paid in cash to the fund. Capital Hill is expected to serve as fund manager, establishing and managing a closed-end real estate investment fund once regulatory requirements and final agreements are completed.

Preliminary estimates suggest project revenue could exceed SAR 4 billion once the development is completed and stabilized. The establishment and offering of the fund are subject to approvals from the Saudi Capital Market Authority and applicable fund regulations.

For residents and prospective buyers, the project is still at the MoU and fund-structuring stage. Detailed unit sale prices, payment plans, off-plan booking fees, and maintenance charges have not yet been publicly specified, and are expected to be announced as the project advances. The scale of the plan reflects continued momentum in Madinah's residential market and broader development activity across the Kingdom.

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