Saudi-Listed Masar Plans USD 58.9m Real Estate Fund for Makkah Hotel

Makkah, Saudi Arabia: Saudi-listed Umm Al Qura for Development & Construction Company (Masar) has signed a non-binding memorandum of understanding to establish a real estate investment fund valued at USD 58.93 million (SAR 221 million) to develop a hotel at Masar Destination, a mixed-use project in Makkah.

The proposed private fund is intended to support hospitality development within Masar Destination, a large-scale urban regeneration project located in close proximity to the Grand Mosque, aimed at enhancing accommodation capacity and visitor infrastructure in the holy city.

Joint venture structure and fund composition

According to a statement filed with the Saudi Stock Exchange, the fund will be established as a joint venture between Al-Inma First Development Company, a special-purpose vehicle for Masar-owned Al-Inma Makkah Development Fund I, BIM Capital, and Ajbal Real Estate Development.

The total fund value includes the land cost and part of the development cost, with capital to be injected through a combination of cash, in-kind contributions, and investor subscriptions.

Under the proposed structure, BIM Capital will act as the fund manager, while Ajbal Real Estate Development will serve as the project developer. Al-Inma First Development Company will contribute the land plot partially as an in-kind contribution.

Masar said the final ownership stakes of the three parties will be determined upon the formal establishment of the fund. The memorandum of understanding will remain valid for six months from the date of signing or until the completion of the fund’s establishment, whichever occurs first. The agreement may be extended subject to mutual written consent.

The planned fund reflects continued investment momentum in hospitality assets in Makkah, as developers and investors seek to support long-term demand driven by religious tourism and ongoing urban development initiatives across the city.