First Avenue for Real Estate Development Co. Announces Contract Sign Off with The Royal Commission for Makkah City and Holy Sites and Jadwa Investment, in its capacity as the Fund Manager

First Avenue for Real Estate Development Company signed a 180-day framework agreement with the Royal Commission for Makkah City and Holy Sites and Jadwa Investment to develop the East Hindawiyah informal settlement area in Makkah.
The project consortium consists of First Avenue (45% stake), Dar Al Majed Real Estate (35%), and Rekaz Real Estate (20%), with Jadwa Investment serving as the Fund Manager.
The consortium is entitled to a 15% development fee of actual project costs, a 2.5% sales commission, and a 14% performance incentive for returns exceeding an 8% Internal Rate of Return (IRR).
Board members Abdulsalam Al-Majed and Khalid Al-Qahtani are disclosed as related parties due to their leadership roles in consortium partners Dar Al Majed Real Estate and Rekaz Real Estate, respectively.

Element List	Explanation
Date of Announcement of the Award	2026-06-01 Corresponding to 1447-12-15
Contract Subject Matter	Further to the announcement of First Avenue for Real Estate Development Company published on 01/06/2026 regarding the consortium comprising First Avenue for Real Estate Development Company, Dar Al Majed Real Estate Company ("Almajdiah"), and Rekaz Real Estate Company being awarded the tender for the development of the East Hindawiyah Project in Makkah, the Company is pleased to announce that the consortium has signed a framework agreement with the Royal Commission for Makkah City and Holy Sites and Jadwa Investment Company, in its capacity as the Fund Manager, in relation to the development of the East Hindawiyah informal settlement area in Makkah. Pursuant to the agreement, the consortium will undertake the development of the project in accordance with the terms and conditions of the agreement and the relevant implementing agreements.
The Entity with Which the Contract was Signed	The Royal Commission for Makkah City and Holy Sites and Jadwa Investment, in its capacity as the Fund Manager
Date of Signing the Contract	2026-06-24 Corresponding to 1448-01-09
Contract Value	1. The development fee payable to the consortium shall be 15% of the actual project costs, which will be determined and finalized in the Development Agreement to be executed with the Fund Manager following the completion of the required studies and approval of the project's design plans. 2. The consortium shall be entitled to a performance incentive equivalent to 14% of any return exceeding the Fund's target Internal Rate of Return (IRR) of 8% 3. A sales commission fee of 2.5% of the project's sales value shall be payable to the consortium.
Contract Details	The agreement aims to regulate the relationship between the parties and establish the general framework for the development of the East Hindawiyah Project in Makkah by setting out the principal terms and conditions for the development of the project. It also provides for the appointment of a private closed-ended real estate investment fund manager (Jadwa Investment Company), including the mechanism for establishing the fund, acquiring the project land, and appointing the consortium as the developer and exclusive marketer of the project, in accordance with the applicable laws and regulations. It should be noted that the project development consortium consists of First Avenue for Real Estate Development Company with a 45% stake, Dar Al Majed Real Estate Company ("Almajdiah") with a 35% stake, and Rekaz Real Estate Company with a 20% stake. The project is expected to enhance the investment value for the participating parties by capitalizing on the promising opportunities offered by the project. It is also anticipated to support urban development efforts in Makkah, contribute to infrastructure development, and improve quality of life, in line with the objectives of Saudi Vision 2030 and the Developed Neighborhoods Program launched by the Royal Commission for Makkah City and Holy Sites.
Contract Duration	180 days from the date of signing the agreement.
Financial Impact and the Relevant Period	The agreement is expected to have a positive financial impact on the Company during the various stages of the project's development. However, the value and timing of such impact cannot be determined with precision at this stage, as the financial impact will be more accurately assessed following the establishment of the fund, the execution of the Development Agreement, and the approval of the project's final costs. Any material financial impact will be announced in due course.
Related Parties	Mr. Abdulsalam Al-Majed, a Member of the Board of Directors, is the Managing Director of Dar Al Majed Real Estate Company "Almajdiah". Mr. Khalid Al-Qahtani, a Member of the Board of Directors, is the Chairman of the Board of Directors of Rekaz Real Estate Company.