Ladun Investment Company’s subsidiary, “Built Industrial Co.,” has signed a contract to carry out the works for “The Point Abha” project on behalf of the Real Estate Development Fund (REDF).
The contract is valued at approximately SAR 646 million, inclusive of VAT.
Details
Ladun Investment clarified that “The Point” is a mixed-use project, covering an area of 75,000 square meters.
It is located on King Fahd Road in Abha, in the Asir region of southern Saudi Arabia.
The project will include a shopping center, a hotel, entertainment facilities, administrative buildings, open spaces, and gardens.
The company stated that the project is considered a unique destination for retail and hospitality, aiming to provide an exceptional experience in retail, lifestyle, food and beverage, and hospitality sectors.
So what
Ladun mentioned that the project’s duration is 1,080 days, and its financial impact will be reflected in the company’s results over the years 2025, 2026, and 2027.
It is worth noting that the “Real Estate Development Fund,” the project owner, is a private real estate investment fund, owned by Red Sea Asir Company and Tourism Development Fund, managed by Fransi Capital.
Some context
In a recent interview with CNBC Arabia, “Hassan Alhazmi,” CEO of Ladun Investment, announced that a contract had been signed between “Musharaka Capital” and “Jabal Omar Development Co,” for the acquisition of land worth approximately SAR 660 million.
He added that the planned closed fund with “Musharaka” will reach a value of SAR 525 million, with total investments exceeding SAR 1.4 billion.
Ladun will act as the developer, marketer, and contractor.
Alhazmi also mentioned that the new project will have a third of its area dedicated to hotel use, while the remaining two-thirds will be residential units of “high quality” to be sold to investors.
He clarified that his company will continue to operate and manage the tower after its construction, which is expected to be completed within three years.
Additionally, he stated that the expected returns from the real estate fund will exceed SAR 2 billion, and the contract duration is five years, with a one-time two-year extension option.
The fund will be closed once its returns are distributed.
On another note, the CEO highlighted that Ladun has signed an agreement with “Mawten Real Estate Co” on the sidelines of Cityscape Global, the region’s leading real estate event in Riyadh.
This agreement involves a 30% participation in the land next to the Haramain Station in Mecca, with total investments exceeding SAR 840 million for 935 residential units to be sold off-plan.
This is in addition to a previous agreement with the global hospitality group “Cheval Collection” to develop land owned by Ladun on King Fahd Road, with investments surpassing SAR 300 million.
In his interview with “Argaam,” Alhazmi noted that the company focuses on offering high-quality products requiring “high capabilities” in terms of execution and investment funding.
The company also coordinates with financial entities and companies to deliver products that meet market needs, especially in Riyadh and Mecca. This has driven Ladun to announce new projects in these cities.
Now what
Alhazmi revealed that Ladun has closed projects worth over SAR 3 billion in Mecca, Jeddah, and Riyadh during the past period.
He also announced that the Board of Directors has approved a move to the main market (TASI) and appointed “Al Rajhi Capital” as an advisor.
It is noteworthy that Ladun Investment was listed on the parallel market “Nomu” in June 2022.
The company was established as a limited liability company in 2004 in Riyadh and transformed into a closed joint-stock company in 2011.
Its current capital stands at SAR 500 million, and it operates in real estate development and asset management.
The Board of Directors recently decided to distribute SAR 10 million in cash dividends to shareholders, at SAR 0.02 per share, to be paid on November 27, 2024.
Ladun Investment’s net profit dropped to SAR 32.4 million in the first half of the current year, a decrease of nearly 56% compared to the same period last year.
Earnings per share fell to SAR 0.06, compared to SAR 0.15 in the same period of 2023.
