Sumou inks 2 deals to develop, sell residences in Khobar Downtown

Logo of Sumou Real Estate Co.

Sumou Real Estate Co. signed three 48-month agreements with Saudi Downtown Co. (SDC), a subsidiary of the Public Investment Fund (PIF), to manage the development, construction, marketing, and sale of two residential projects within the Khobar Downtown project. The first project covers a 28,346-sqm land plot north of the Boulevard and involves mid-rise residential buildings, while the second involves a high-rise residential tower on a 4,800-sqm plot.

The third project involves developing mid-rise residential buildings for marketing and sale on a 28,292-sqm plot south of the Boulevard.

Under the agreements, SDC will contribute the land, while Sumou will make a partial investment and finance the remaining costs through off-plan sales proceeds.

Sumou will act as developer, contractor, and marketer in return for development management fees of 6.5% of total development costs, marketing and sales fees of 2% of total sales, and a 32% share of each project’s net profit.

The company expects the projects to reflect positively in its financial results once the agreements take effect and work begins.