Riyadh — Mubasher: Asas Makeen Real Estate Development and Investment Company recently announced the signing of a construction contract with Ittihad Althabat Company for Contracting, according to a bourse filing.
The agreement is valued at an estimated SAR 315 million, covering the execution and completion of construction and finishing works for several residential and commercial projects owned by the company in Riyadh.
The projects span a total area of approximately 65,000 square meters.
Under the terms of the contract, which was penned on 17 September 2026, the contractor will deliver the projects on a turnkey basis using a cost-plus-fee model.
Asas Makeen noted that the estimated value includes the contractor's fees and expenses but excludes value-added tax (VAT).
The listed company added that the final costs will be determined based on the approved budget for each individual project.
The execution period for each project is set at 18 months, starting from the date plans are approved by the Ministry of Municipalities and Housing.
Asas Makeen further expects the financial impact of the contract to be reflected gradually in its financial statements throughout the implementation period, based on work progress and monthly achievement certificates.
The company confirmed there are no related parties involved in the transaction.
