Umm Al Qura, Aljazira, and Naif Saleh to establish SAR 1.4 bn real estate private fund: Umm Al Qura Development and Construction Company (Masar) inked a non-binding MoU with Aljazira Capital and Naif Saleh Abdulaziz Al Rajhi Investment Company to set up a private real estate fund with a target capital of SAR 1.4 bn, according to a Masar statement.

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What’s being built? The fund will aim to develop two land plots within the Masar Destination project in Makkah, intended for hotel, residential, and commercial use.

Who’s doing what? Aljazira Capital will serve as fund manager and Naif Al Rajhi Investment as developer. Masar will contribute the land as an in-kind investment, while the developer will provide both cash and in-kind contributions. Ownership shares will be finalized once the fund is officially established.

The MoU is valid for six months from the signing date (30 June 2025), or until the fund is launched — whichever comes first. It may be extended with written consent from all parties. Masar noted that the agreement has no immediate financial impact.

Background: Umm Al Qura has been ramping up its land sales, selling a 2.4 sqm land plot to Watheeq Capital-managed Watheeq Retal Roya Al Haram Real Estate Fund for SAR 145.3 mn and a 2.7 sqm plot to Tomooh AlKhaleej Financial Company for SAR 264.9 mn. The company also sold a 2.5 sqm plot located in the Masar Destination Project for SAR 255.8 mn to Home Investment Fund.

IN OTHER REAL ESTATE NEWS-

Masar gets another real estate fund for a residential tower: Our friends at Retal Urban Development separately signed a 60-day MoU with Watheeq Capital to launch a SAR 600 mn real estate fund to develop a 28-floor residential tower in Makkah’s Masar destination, it said in a disclosure to Tadawul yesterday.

More details: The project will include around 200 housing units with close proximity to the Holy Mosque and the Haramain High Speed Rail station.

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