Saudi Firm Alandalus Property Co. Launches SR831 Million Project in Makkah
In a bold move to enhance Makkah’s commercial infrastructure, Alandalus Property Co. has kicked off construction on a massive SR831 million ($222 million) project. The Saudi-based real estate firm announced the commencement of work on a new commercial center in the Makkah Al-Mukarramah region, covering an impressive 50,650 sq. m.
Features of the Project
The commercial center is set to include 350 rental units, offering a variety of spaces including showrooms, retail outlets, hypermarkets, entertainment zones, and dining options. Additionally, the center will provide parking for up to 1,800 vehicles, catering to the needs of visitors and shoppers alike.
Commitment to Enhancing Makkah’s Commercial Landscape
Alandalus’ decision to invest in this project underscores its dedication to boosting Makkah’s commercial capabilities. This initiative comes on the heels of expansions by UAE-based Lulu Group, which recently launched projects in Makkah and Madinah. The chosen engineering design for the project was carefully selected from a pool of top-notch designs by skilled engineering offices in the Kingdom.
Expected Completion and Funding
Construction is already underway, with all necessary permits secured, and the center is projected to be finished by the first quarter of 2027. The project is being developed by Masat Property Co., a joint venture between Alandalus and Buroj International, with Hamat Holding Co. overseeing construction. Funding for the project will primarily come from bank loans, supplemented by contributions from the partners’ resources.
Transforming Makkah and Madinah
These ongoing development projects are poised to significantly enhance infrastructure in Makkah and Madinah, positioning them as leading business and tourism hubs. The recent Manafea agreement signed by key chambers of commerce aims to elevate these holy cities into pivotal financial and business centers in the Islamic world.
Financial Update
In a separate report, Alandalus revealed a 67 percent decline in net profit for the first quarter of 2024, dropping to SR4.7 million compared to the same period last year. The decrease was attributed to higher financing costs and increased expenses in the hospitality and office sectors. Consolidated revenue also saw a 2.70 percent year-on-year decrease to SR53 million, driven by a 6 percent decline in the retail and operations segment.