Sumou Real Estate Company announced the signing of an agreement with Saudi Downtown Company, wholly owned by the Saudi Public Investment Fund, to develop, execute and market a residential units project in Downtown Al Khobar with an area of 4,827 m². Under the agreement, signed on Sunday, Sumou Real Estate will oversee the development, execution and marketing of the project, as well as the sale of its residential units. Saudi Downtown Company's contribution will be in the form of land, while Sumou Real Estate Company's contribution includes a partial investment and financing the remaining portion from off-plan sales proceeds. The agreement also appoints Sumou as developer, contractor and marketer of the project in exchange for agreed fees, in addition to a share of the project's profits. Sumou Real Estate Company will receive development management fees of 6.5% of total development costs, in addition to marketing and sales fees of 2% of total sales. It will also receive 32% of the project's net profits in return for the investment the Company will provide. The agreement is valid for 48 months from the date it takes effect. The project is expected to have a positive impact on the Company's results once the agreement becomes effective and work commences.
