Riyadh – Mubasher: Umm Al Qura for Development and Construction Company (MASAR) has announced the formal execution of sale agreements for two land plots within the project’s first zone.
The transaction, valued at a total of SAR 462.11 million, follows the initial reservation agreements signed in late 2025. The plots have been sold to Madar Al Tasea Company, a special purpose vehicle established for the Madar Real Estate Fund, which is managed by Alistithmar Capital.
The finalization of these agreements marks a significant milestone in the commercial development of the Masar Destination. According to the regulatory filing on the Saudi Exchange (Tadawul), the transaction was officially signed on 28 June 2026.
This follows a previous announcement made by the company on 17 November 2025 regarding the initial reservation of these specific land parcels.
The financial breakdown of the sale reveals that the first plot was sold for SAR 260.97 million, while the second plot commanded a price of SAR 201.14 million. The combined sale price of SAR 462.11 million represents a substantial premium over the historical book value of the assets.
The company disclosed that the total book value for both plots stands at 255.93 million Saudi riyals, with the first plot valued at SAR 142.77 million and the second at SAR 113.16 million on the company’s balance sheet.
In terms of physical scale, the two plots cover a combined area of 6,614 square meters. The larger of the two parcels spans 3,740 square meters, while the second covers 2,874 square meters.
The purchaser, Madar Al Tasea Company, intends to utilize the land for the development of residential units under the management of the Madar Real Estate Fund.
This alignment with institutional real estate funds highlights the ongoing interest from capital market players in the residential sector of the Makkah real estate market.
Umm Al Qura confirmed that the financial impact of these transactions will be positive. The influx of capital is expected to enhance the company’s liquidity position and bolster its overall financial results.
Management has indicated that the proceeds from the sale will be strategically deployed to fund working capital requirements and to support the progression of existing infrastructure and development projects within the Masar Destination.
The disclosure noted that there were no delays in the execution of these agreements relative to previously announced timelines, and no additional costs were incurred that would alter the financial outlook of the deal.
The Masar Destination is one of the most significant urban development projects in the Kingdom, aimed at enhancing the hospitality and residential capacity of Makkah.
By divesting these plots to specialized real estate funds, Umm Al Qura continues its strategy of partnering with institutional investors to accelerate the vertical development of the destination.
This transaction underscores the continued demand for prime land within the first zone of the project, which is strategically located to serve the needs of residents and visitors alike.
Umm Al Qura recently unveiled a milestone in the redevelopment of Makkah’s urban landscape following the signing of framework agreements for the Hindawiyah West and Hindawiyah South projects on 24 June.
