RIYADH - Retal Urban Development Company has announced a significant partnership with National Housing Company (NHC) to construct over 1,100 housing units in Saudi Arabia's key cities, Riyadh and Jeddah. The projects, valued at SAR 925 million ($246 million), are expected to enhance Retal's financial performance from 2024 to 2027.
The company's filing on the Saudi Stock Exchange (Tadawul) today revealed the scope of the initiatives. In Riyadh, the plan is to develop 366 homes within Al Shafa Residential Land at a cost of SAR 290 million ($77 million) covering a land area of approximately 133,934 square meters. The Jeddah project is even more expansive, with 803 units planned at a cost of SAR 635 million ($169 million) and will span about 209,483 square meters.
These developments come as part of Retal's strategic growth efforts in the housing sector and align with the company's previous deal signed in April valued at SAR 418 million ($111 million). Completion of the new projects is targeted for the year 2027, with funding strategies that include self-financing and off-plan sales. This approach is anticipated to start positively influencing financial outcomes following the commencement of sales.
The announcement arrives at a time when Retal reported comparatively lower profits for the first nine months of 2023 at SAR 146 million ($39 million) post-Zakat and taxes, which is down from SAR 183 million ($49 million) for the same period in 2022. Nonetheless, these new agreements are set to create a forward momentum for the company's financial trajectory in the coming years.
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