Key Takeaways
- • First Avenue for Real Estate Development Company (Saudi stock exchange-listed) signed a $22 million mixed-use development agreement with North Star Real Estate Fund, managed by Dinar Investment Company, for a Riyadh project.
- • The project sits on a 10,442.8 square metre land plot in Al Arid District along King Abdulaziz Road, a major arterial corridor connecting northern and southern Riyadh with proximity to King Fahd Road and Abu Bakr Al-Siddiq Road.
- • First Avenue will receive a development fee of 13% of actual project costs, estimated at approximately SAR 83 million (excluding VAT), with final costs determined post-approval of detailed design plans.
- • The 24-month contract timeline begins upon completion of approved design drawings, with financial impact expected to be reflected from the first half of 2027.
- • The agreement is part of First Avenue's 'Tanmiah' programme, which targets development and investment opportunities in strategic Riyadh locations with high value-addition potential.
Summary
First Avenue for Real Estate Development Company, listed on the Saudi stock exchange, has formalized a development partnership with North Star Real Estate Fund to deliver a mixed-use project in Riyadh's Al Arid District. The agreement, disclosed through stock exchange filings, marks a collaboration between the developer and the fund managed by Dinar Investment Company to capitalize on a strategically positioned 10,442.8 square metre land parcel.
The project site's location along King Abdulaziz Road—a principal arterial connecting Riyadh's northern and southern districts—provides significant accessibility advantages. Proximity to major transport corridors including King Fahd Road and Abu Bakr Al-Siddiq Road enhances the site's commercial and residential viability, positioning it within Riyadh's broader urban expansion framework.
Under the development agreement, First Avenue will assume responsibility for detailed design, construction supervision, and project marketing in exchange for a 13% development fee based on actual project costs. Estimated project costs stand at approximately SAR 83 million (excluding VAT), though final figures will be determined following completion of comprehensive design and engineering studies. This cost-plus fee structure aligns incentives between the developer and fund manager while allowing for cost adjustments as detailed planning progresses.
The contract operates on a 24-month timeline commencing from approval of final design drawings. First Avenue anticipates recognizing the financial impact of this engagement from the first half of 2027 onward, providing visibility into near-term revenue contribution. This project strengthens First Avenue's portfolio execution under its 'Tanmiah' programme, an initiative focused on identifying and developing high-value-addition real estate opportunities within strategically important Riyadh micro-markets.
The project site's location along King Abdulaziz Road—a principal arterial connecting Riyadh's northern and southern districts—provides significant accessibility advantages. Proximity to major transport corridors including King Fahd Road and Abu Bakr Al-Siddiq Road enhances the site's commercial and residential viability, positioning it within Riyadh's broader urban expansion framework.
Under the development agreement, First Avenue will assume responsibility for detailed design, construction supervision, and project marketing in exchange for a 13% development fee based on actual project costs. Estimated project costs stand at approximately SAR 83 million (excluding VAT), though final figures will be determined following completion of comprehensive design and engineering studies. This cost-plus fee structure aligns incentives between the developer and fund manager while allowing for cost adjustments as detailed planning progresses.
The contract operates on a 24-month timeline commencing from approval of final design drawings. First Avenue anticipates recognizing the financial impact of this engagement from the first half of 2027 onward, providing visibility into near-term revenue contribution. This project strengthens First Avenue's portfolio execution under its 'Tanmiah' programme, an initiative focused on identifying and developing high-value-addition real estate opportunities within strategically important Riyadh micro-markets.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.