First Avenue Announces the Award of The Concession for the East Hindawiyah Informal Settlement Redevelopment Project in Makkah by the Royal Commission for Makkah City and Holy Sites to a Consortium that Includes the Company

A consortium led by First Avenue (45% share), along with Dar Al Majed Real Estate (35%) and Rekaz Real Estate (20%), was awarded the East Hindawiyah District redevelopment project in Makkah.
The project involves developing a 235,000-square-meter area located 1.8 kilometers from the Holy Grand Mosque, with an estimated cost of SAR 2 billion for land and infrastructure.
The consortium is expected to earn development fees of approximately 10% of the project cost, brokerage fees of 2.5% of sales value, and performance incentives for returns exceeding an 8% Internal Rate of Return (IRR).
The development will be structured as a real estate investment fund managed by Jadwa Investment, with the formal contract signing expected on June 10, 2026.

Element List	Explanation
Introduction	Praise be to Allah, who has honored us with the privilege of contributing to the development effort in the holiest place on Earth, Makkah Al Mukarramah, further strengthening the geographic diversification of the Company's project portfolio across Riyadh, Jeddah, and Al Kharj. A consortium comprising First Avenue for Real Estate Development Company, Dar Al Majed Real Estate Company ("Al Majdiah"), and Rekaz Real Estate Company earned the highest score in the competitive tender for the development of the East Hindawiyah District in Makkah. The project forms part of the Makkah Informal Settlements Development Program and is undertaken under the supervision of the Royal Commission for Makkah City and Holy Sites. The project covers a land area of approximately 235,000 square meters, with a floor area ratio (FAR) of 3, and an estimated project cost of approximately SAR 2 billion, including land acquisition and infrastructure development costs, excluding any potential future superstructure development. This achievement represents a significant milestone for the consortium, given the unique religious significance and special place that Makkah holds in the hearts of Muslims worldwide, as well as the honor of contributing to the development effort in the holy city. In addition, the project offers compelling economic potential. The redevelopment of informal settlements in Makkah is among the Kingdom's most important national initiatives aimed at enhancing residents' quality of life and enabling sustainable urban development, in alignment with the objectives of the Informal Settlements Development Program and Saudi Vision 2030. This project builds upon a series of successful and landmark developments led by the consortium across the Western and Central regions of the Kingdom. Over recent years, the consortium's portfolio has expanded to include prominent projects in Jeddah and Riyadh, distinguished by innovative development models and strategic partnerships that have contributed to creating sustainable economic and urban value.
Date of Award	2026-05-31 Corresponding to 1447-12-14
Counterparty	The Royal Commission for Makkah City and Holy Sites
Project Value	The total project cost is estimated at approximately SAR 2 billion. The consortium is expected to earn development fees of approximately 10% of the development cost, in addition to a performance incentive linked to returns exceeding the fund’s target Internal Rate of Return (IRR) of 8%, as well as brokerage fees of 2.5% of the project’s sales value.
Expected Date for Signing the Contract	2026-06-10 Corresponding to 1447-12-24
Project Details	The East Hindawiyah Project is located approximately 1.8 kilometers from the Holy Grand Mosque in Makkah and aims to develop an integrated urban destination featuring a mix of office, residential, retail, and hospitality components, interconnected through public spaces designed to enhance the quality of life of the district. The project is expected to strengthen the area's attractiveness for investment, support the diversification of economic activities, and enhance the efficiency of urban infrastructure, in line with the objectives of Saudi Vision 2030, while further reinforcing Makkah's position as a promising investment destination. The consortium consists of: * Dar Al Majed Real Estate Company: 35% * Rekaz Real Estate Company: 20% * First Avenue for Real Estate Development Company: 45% The project will be developed through a real estate investment fund structure managed by Jadwa Investment. The consortium benefits from its diverse range of technical, financial, and commercial expertise and capabilities, enhancing execution efficiency, mitigating project risks, and increasing the likelihood of successful delivery. Furthermore, the consortium supports national objectives aimed at improving quality of life and maximizing value for shareholders, in alignment with the aspirations of Saudi Vision 2030.
Related Parties	Board Member Mr. Abdulsalam Al Majed serves as the Managing Director of Dar Al Majed Real Estate Company ("Al Majdiah"). -Board Member Mr. Khalid Al Qahtani serves as the Chairman of the Board of Directors of Rekaz Real Estate Company.
Attached Documents	Attached Documents