Ladun Investment Company Announces the Signing of the Framework Agreement for the Al Khalidiyah Informal Area Development Project in Makkah with the Royal Commission for Makkah City and Holy Sites.

Ladun Investment Company, in a 50/50 consortium with Al-Ayuni Investment and Contracting Company, signed a framework agreement on June 24, 2026, with the Royal Commission for Makkah City and Holy Sites to develop the Al Khalidiyah Informal Area in Makkah.
The project includes establishing a closed-ended private real estate investment fund with a minimum capital of SAR 4 billion to manage land acquisition, infrastructure development, and the sale of subdivided plots.
The fund's duration is set for five years, with the option for two additional one-year extensions (5+1+1).
Ladun Investment Company expects a positive financial impact on its profitability starting from 2027 through the end of the fund's term.

Element List	Explanation
Introduction	Ladun Investment Company Announces the Signing of the Framework Agreement for the Al Khalidiyah Informal Area Development Project in Makkah with the Royal Commission for Makkah City and Holy Sites, which was awarded by the Authority to a consortium of Ladun Investment Company and Al-Ayuni Investment and Contracting Company.
Date of Announcement of the Award	2026-05-31 Corresponding to 1447-12-14
Contract Subject Matter	Development of the Al Khalidiyah Informal Area in Makkah under the Developed Neighborhoods Program.
The Entity with Which the Contract was Signed	Royal Commission for Makkah City and Holy Sites
Date of Signing the Contract	2026-06-24 Corresponding to 1448-01-09
Contract Value	Establishment of a real estate fund with a capital of not less than SAR 4 billion.
Contract Details	The scope of the project includes the establishment of a closed-ended private real estate investment fund in accordance with the Investment Funds Regulations issued by the Capital Market Authority and other applicable laws and regulations, with a capital of no less than SAR 4 billion. The fund will acquire the project land through the transfer of ownership by the Royal Commission in favor of the fund for the purpose of planning and developing the project's infrastructure. Thereafter, the land will be subdivided into plots and sold on behalf of the fund by the developer (the consortium), which will be appointed as the exclusive marketer of the project, followed by an exit from the fund. It should be noted that the partnership in this project is shared equally, with 50% for Ladun Investment Company and 50% for Al-Ayuni Investment and Contracting Company, covering development activities, returns, marketing, sales, and in-kind or cash contributions. The project scope also includes the design, execution, and delivery of infrastructure works in accordance with planning and engineering standards that ensure a balance between development requirements and the preservation of the city's urban and social fabric, while complying with the requirements of the relevant authorities, including the Royal Commission for Makkah City and Holy Sites, the Makkah Municipality, National Water Company, Saudi Electricity Company, telecommunications companies, the Real Estate General Authority, the Off-Plan Sales Program (Wafi), and other service providers.
Contract Duration	The term of the fund shall be five (5) years, extendable for two (2) additional one-year periods (5+1+1) from the commencement date of the fund, in accordance with the terms and conditions of the fund
Financial Impact and the Relevant Period	Positive impact on the Company's profitability from 2027 until the end of the fund's term.
Related Parties	NA