KEC puts another Madinah land parcel into partner-funded development

KEC runs same playbook for third time: Knowledge Economic City (KEC) has partnered with Kaden Investment on a SAR 2.5 bn mixed-use extension of its Multaqa Al Madinah project, Multaqa Al Madinah 2, according to a Tadawul disclosure. The project spans around 92k sqm with more than 1.5k residential units plus commercial and office space, and it uses the same structure KEC has now deployed across a string of Madinah developments: contribute the land, keep the majority stake, and let a partner carry the funding and construction.

How the split works: The project runs through a closed-end real estate fund financed by equity, bank debt, and off-plan sales. KEC contributes the land, valued at SAR 692.3 mn, for a 75% stake; Kaden puts in SAR 208.2 mn for 25% and acts as development manager, handling construction, leasing, property management, and residential sales. Capital Hill is the proposed fund manager. Residential units are built for sale, including off-plan during construction, while commercial and office space is leased and operated until stabilized, then sold.

What KEC gets: Roughly SAR 67.8 mn in banknotes plus fund units valued at SAR 624.6 mn, against a land cost estimated at SAR 64.2 mn. The structure is subject to definitive agreements and regulatory approval, with a 90-day exclusivity window.

REMEMBER- This mirrors KEC’s Multaqa Residences agreement with Alrashid Properties, where Alrashid funds, builds, and sells while KEC keeps the land and a share of the upside. There, the 149.5k-sqm site was valued at SAR 9k per sqm, around SAR 1.35 bn, against a book value of just SAR 94 mn. KEC is using the same model for the 332k-sqm Knowledge Gardens, with Fourmen funding and developing while KEC and Algharraa contribute SAR 1.66 bn worth of land and retain 39.9% of the fund.