KEC and Kaden to Develop $666.16 Million Mixed-Use Project in Madinah

MADINAH, SAUDI ARABIA: Knowledge Economic City Company (KEC) and Kaden Investment Company have signed a memorandum of understanding to develop Multaqa Al Madinah 2, a mixed-use project valued at approximately $666.16 million (SAR2.5 billion).

The project will form part of the first phase of the wider Multaqa Al Madinah development and is expected to be financed through a real estate fund, according to a filing by KEC to the Saudi stock exchange.

Multaqa Al Madinah 2 will occupy a site of approximately 92,043 square metres, with an estimated total gross floor area of nearly 229,117 square metres.

Based on the initial concept, the development is expected to include 1,527 residential units distributed across three residential zones.

The scheme will also feature commercial and office components with a net leasable area of approximately 31,108 square metres, alongside clubs, recreational and service facilities.

Landscaping works are also planned for the central park adjacent to the project.

Residential Units Planned for Sale

The residential component is expected to be sold, while the commercial and office elements are likely to be leased until operations and occupancy reach a stable level.

The commercial and office assets are then expected to be exited through a sale.

Kaden Investment will act as the project’s development manager.

Under the proposed structure, KEC will own 75% of the real estate fund, while Kaden Investment will hold the remaining 25%.

Capital Hill has been appointed as the fund manager.

The development will extend the first phase of Multaqa Al Madinah, which includes a mall, a Hilton hotel tower and a Hilton-branded residences tower.