Ladun Investment signs final Riyadh mixed-use development agreement with Asbar Financial
A planned mixed-use project in Riyadh's Al Munsiyah district is moving into a new execution phase after Ladun Investment Company signed a final development agreement tied to the site. The scheme covers four land plots with hotel, luxury housing, retail and office components, and carries an estimated cost of about SAR 339 million.
Highlights
- Ladun Investment signed a final 48-month development agreement with Asbar Financial to develop mixed-use real estate on 16,844.29 sqm in Riyadh's Al Munsiyah.
- Ladun will receive a development fee equal to 10% of total project costs, excluding land value, plus a performance incentive if the internal rate of return exceeds 18%.
- The project's estimated cost rose to SAR 339 million from SAR 250 million, with progression subject to securing all required regulatory and off-plan sales approvals.
Project scope and commercial terms
As reported by Saudi Exchange, Ladun Investment Company has entered into a Final Development Agreement with Asbar Financial Company to study and develop a mixed-use real estate project on land owned by the Asbar Al Munsiyah Fund in Riyadh's Al Munsiyah district.The development spans four plots with a total area of 16,844.29 square meters. Plans for the site include a hotel, luxury residential units, retail shops and administrative offices.
The agreement runs for 48 months, with Ladun serving as project developer. The company is set to receive a development fee equal to 10% of total project costs, excluding land value, and may also earn an added performance incentive if the project exceeds a target internal rate of return of 18%.
Cost increase and approval requirements
The project's estimated cost stands at about SAR 339 million, up from SAR 250 million in the earlier announcement. That revision points to a larger capital commitment as the project advances from memorandum stage to a final development framework.The final development remains subject to all required regulatory approvals for real estate development and off-plan sales under applicable laws. Those approvals are a key condition before the Riyadh project can proceed fully.
In our earlier article on the Sabah Pan Borneo Highway Phase 1a cost increase, we detailed how delays and scope pressures pushed the project’s budget higher and forced additional public funding beyond the original allocation. We also outlined how the prolonged timeline across multiple work packages added strain to development spending and postponed the intended connectivity benefits for rural communities.
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