Sumou Real Estate Signs SAR 2 Billion Agreement to Launch Landmark Investment Fund

Sumou Real Estate Company announced the signing of an agreement with Aljazira Capital Company and Sumou International Investment Company to establish a real estate investment fund exceeding SAR 2 billion in value. The fund aims to acquire lands spanning 414,324 square meters in Riyadh, where more than 800 residential units will be constructed.

The agreement also includes acquiring lands owned by Sumou in Dammam (48,175 square meters) and Khobar (8,850 square meters). Sumou Real Estate will serve as the project developer, receiving a development management fee equivalent to 10% of the development costs.

The fund will settle the value of Sumou’s lands, totaling SAR 90,673,303, partially in-kind (78%) by issuing 7,045,315.6 investment fund units, valued at SAR 70,453,156.4, with a nominal unit price of SAR 10. The remaining 22% will be settled in cash, amounting to SAR 20,220,146.6, to be paid via a certified check upon ownership transfer.

Sumou will hold a 26.2% stake in the fund’s equity, representing the development management fees and the in-kind settlement of its lands.