Saudi Arabia’s SPGA invites pre-qualification bids for TOD project in Makkah
The project is to be developed in co-operation with the Royal Commission for Makkah and Al-Masha’ir Holy, the SPGA said
Saudi Arabia’s State Properties General Authority (SPGA) has invited prequalification bids from leading project developers and investors for a major transit-oriented development (TOD) project, which is to be developed on a 167,000sqm area in Makkah city.
The project is to be developed in cooperation with the Royal Commission for Makkah and Al-Masha’ir Holy, the SPGA said, adding that the planned mixed-use project will feature a bus station, a range of retail outlets, and a 400-key four-star hotel property. The total built up area will be approximately 254,158sqm.
SPGA stated that the project is planned to be developed on a plot in the Al Hajlah district and will be located 300m from the Grand Mosque. It will also be adjacent to the Makkah Clock Tower, the statement confirmed.
In November 2021, it was announced that Makkah and Madinah real estate opens were open to foreign investment.
Furthermore, the land will be provided on a lease basis for a 25-year period, with the private sector responsible for the design, development, and operation of the project. The deadline for submitting bids of the project is 1 December 2022, the authority stated.
The project cost has been estimated at between $399mn to $532mn. PwC is the financial and lead advisor for the project, while SALFO Engineering and Management are the technical advisers.
The request for proposal is expected to be issued on 22 December 2022, with a submission deadline of 13 April 2023. The project is expected to achieve commercial close by June 2023, the SPGA stated.
In March 2022, Saudi’s NHC launched a new residential project in Makkah for citizens.
In September 2022, the SPGA signed an acquisition agreement with Um Al-Qura Development and Construction Company, owner and developer of the Masar Destination in Makkah, in exchange for their private real estate, which exceeds and area of 160,000sqm pursuant to Royal Decree No 44133, dated 5/8/1442 AH.
The Governor of SPGA said that the agreement came within the framework of the authority’s strategic work to raise its productive and economic efficiency through innovative solutions and that one of its most important goals is to use the state’s lands and real estate for development, as well as to provide financial solutions for fiscal positions of the economy.
In November 2022, JODC said it had registered a 407% increase in revenue in Q3 2022.
