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Umm Al Qura for Development and Construction has completed the sale of two plots of land within its Masar destination in Makkah. The combined book value of the plots is SAR 93.4 million, while the transaction value totals SAR 228.4 million, reflecting a sizable premium. Masar is a major mixed-use redevelopment project near the Grand Mosque, with residential, hospitality and commercial components. The land sale aligns with the company's ongoing strategy of monetising assets to support funding needs and balance sheet management.
Umm Al Qura for Development and Construction, the developer behind the Masar destination in Makkah, has announced the sale of two plots of land within the master-planned project. The transaction was disclosed during the past week through a regulatory filing.
The two plots have a combined book value of SAR 93.4 million, while the total transaction value stands at SAR 228.4 million. This indicates a significant premium over the carrying value of the assets on the company's books.
Masar is one of the largest urban redevelopment projects in Makkah and is positioned close to the Grand Mosque. The project has been designed as a mixed-use destination, with residential, hospitality, retail and commercial components aimed at supporting pilgrims, residents and businesses. Land monetisation has been a recurring part of the developer's strategy to fund construction activity and improve liquidity.
The company has not disclosed the identities of the buyers or the specific use planned for the two plots. However, previous land sales within Masar have typically been concluded with developers focused on hotels, serviced apartments and related uses that align with the project's master plan.
Umm Al Qura for Development and Construction has, over the past few years, pursued asset sales alongside construction progress to reduce leverage and strengthen its balance sheet, while continuing development across different phases of Masar.
Source Reuters
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