First Avenue Signs $22m Riyadh Mixed-Use Project Deal with North Star Fund

RIYADH, SAUDI ARABIA – First Avenue for Real Estate Development Company, listed on the Saudi stock exchange, has signed a development agreement with North Star Real Estate Fund, managed by Dinar Investment Company, to deliver a mixed-use project in Riyadh.

The project will be developed on a 10,442.8 square metre land plot in the Al Arid District, according to a company disclosure, positioning it within one of Riyadh’s emerging urban zones.

Strategically located on King Abdulaziz Road, a major arterial corridor connecting northern and southern Riyadh, the development also benefits from proximity to key transport routes including King Fahd Road and Abu Bakr Al-Siddiq Road, enhancing accessibility and long-term value potential.

Structured development model and scope

Under the agreement, First Avenue will receive a development fee of 13 percent of actual project costs, aligning its role with both delivery performance and project outcomes.

"The development fee amounts to 13 percent of the actual project costs, which are expected to be approximately SAR 83 million ($22.1 million), excluding value-added tax (VAT). The final cost will be determined upon completion of the approved studies and detailed design plans," the statement said.

The company’s scope of work includes detailed design, supervision of construction works and project marketing, reflecting an integrated development approach across the project lifecycle.

Timeline and strategic positioning

The contract duration is set at 24 months from the completion of approved design drawings, with the financial impact expected to be reflected from the first half of 2027.

The agreement forms part of First Avenue’s ‘Tanmiah’ programme, which focuses on identifying and developing real estate opportunities in strategic, high-growth locations across the Kingdom.

Supporting Riyadh’s urban growth

The project aligns with broader development trends in Riyadh, where mixed-use schemes are increasingly being prioritised to support urban expansion, improve connectivity and enhance the overall quality of the built environment.

As Saudi Arabia continues to advance its Vision 2030 objectives, developments of this nature are expected to play a key role in shaping integrated urban districts that combine residential, commercial and lifestyle components.

The partnership between First Avenue and North Star Real Estate Fund reflects continued institutional interest in the Saudi real estate sector, particularly in well-located projects that offer long-term value creation and align with the Kingdom’s evolving urban development strategy.