Emaar EC inks deals worth SAR 350 mln to develop properties

Emaar the Economic City (Emaar EC) said in a bourse statement on Wednesday that it has signed agreements with Alhokair Group for Operations and Maintenance, as well as Project Management & Development Company Limited (PMD) at a combined value of SAR 350 million.

Emaar EC signed a SAR 100 million agreement with Alhokair Group to develop a four-star hotel in King Abdullah Economic City (KAEC). The deal includes the land value of SAR 15.4 million. A joint venture will be also incorporated with a seed capital of SAR 1 million. Emaar EC will own a 40 percent stake in the new entity, while Alhokair will own the remaining equity.

Under the SAR 250 million agreement, which was signed with PMD, Emaar EC will develop a residential complex comprised of 288 units in KAEC. The deal includes the land value of SAR 47.8 million. PMD and Emaar EC will also establish a joint venture with a seed capital of SAR 1 million. Emaar EC will finance 20 percent from its cash resources, while the real estate firm will hold the remaining 80 percent stake.

The Tadawul-listed developer expects the deals made with both companies to bolster earnings and attract new investments.