Sumou Real Estate Company, asset management firm Al Jazira Capital, and Sumou Global Investment will establish a real estate investment fund to acquire and develop lands in the Kingdom, with projects valued at upwards of SAR 2 bn, the company said in a disclosure to Tadawul.

The details: The fund will develop a 414.3k sqm plot in Riyadh where 800 residential units will be built. It will also take over plots spanning 48.2k sqm in Dammam and 8.9k sqm in Khobar from Sumou Real Estate to develop a SAR 2 bn project.

Who’s in charge? Sumou Real Estate will act as project developer and receive a development fee valued at 10% of the total development costs. It will also receive SAR 90.7 mn from the fund for the handover of land holdings in Dammam and Khobar. The payment’s largest share, at 78%, will be in the form of some 7 mn units in the fund, with a nominal value of SAR 70.5 mn. The remaining 22% will be in cash, comprising SAR 20.2 mn. Sumou’s stake in the fund will total 26.2%, the disclosure said.

Sumou has been active on the regional stage, inking an MoU last week with Egypt’s Hassan Allam Properties, Midar Investment and Urban Development to invest USD 2 bn in hospitality and leisure projects in Cairo. This comes on the heels of a JV set up with Hassan Allam last March to open up cross-border investments in Egypt and Saudi Arabia.

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