First Avenue inks contract to develop industrial land, buys 5.25% land share

Logo of First Avenue Real Estate Development Co. 

First Avenue Real Estate Development Co. signed a contract, on Nov. 5, to develop an industrial raw land plot and purchase a share of 5.25% in the land.

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According to a statement to Tadawul, the company pointed out that the purchase price for the 5.25% stake amounts to SAR 20 million, alongside the signing of an infrastructure development contract for 8% of the expected development costs. The agreement is set for five years, with the project expected to be completed ahead of schedule.

The land, located in Al-Dulum Governorate, south of Riyadh and in close proximity to the Al-Kharj Industrial Area, spans an area of 3.64 million square meters (sqm) at SAR 105/sqm. The land’s prime location near Al-Kharj Industrial Zone and major transportation routes enhances the project's potential, benefiting from the growing demand for industrial lands, supported by the Saudi Vision 2030 industrial boom.

The stake purchase will be self-financed, the statement noted, adding that the financial impact of the deal is expected to be reflected on the company’s financials starting 2025.

The contract was signed with the Combined Group Co., the statement said, adding that there are no related parties to the deal.