Arab News, Wed, Apr 03, 2024 | Ramadan 24, 1445
Al Akaria inks deal with Diriyah Gate for $192.5m for metro excavation
Saudi Arabia:
Excavation work on three components of the Riyadh metro project is set to begin
following the signing of a SR722.1 million ($192.5 million) deal between Saudi
Real Estate Co., also known as Al Akaria, and Diriyah Gate.
The work will encompass areas known as Metro-Box
Central, Metro-Box South, and Metro-Box East and the contract is valid for 1,276
days, the real estate company said in a statement to Tadawul.
The relevant financial impact is expected to
appear in the first quarter of 2024 and the Public Investment Fund is a related
party.
Furthermore, the agreement was awarded to one of
its subsidiaries, Saudi Real Estate Infrastructure Co., also known as Binyah, on
Dec. 20, 2023.
Al Akaria also inked a SR159.6 million deal with
Saudi Real Estate Construction Co., also known as Tamear, for executing civil,
structural, architectural, as well as electromechanical, and external works for
the Tilal Al Riyadh mixed-use project in Al-Malqa District.
The contract, involving one of Al Akaria’s fully
owned subsidiaries, spans an implementation period of 22 months, with the
financial impact will be reflected starting from the second quarter. Notably,
there are no related parties involved in this transaction, the company said in a
bourse filing.
Last month, the company announced its financial
results for the period ending Dec. 31, 2023, reporting a net profit of SR67.6
million. This figure represents a decrease of 38.82 percent compared to the
SR110.5 million recorded the previous year.
In February, Al Akaria signed an agreement with
Marriott International to introduce a new 280-key luxury hotel. The deal will
bring the Autograph Collection brand to the Saudi capital, paving the way for
the opening of the new hotel, according to a statement.
Scheduled to commence construction in 2025, the
hotel is anticipated to welcome visitors by 2028 upon its completion, the
release added.
This step reflects Al Akaria’s commitment to
promoting tourism and hospitality in Riyadh, aligning with the Kingdom’s Vision
2030 goals of creating appealing destinations for both residents and visitors.
Additionally, it contributes to Saudi Arabia’s
aspiration to strengthen its recognized international tourist destination
position.
Moreover, the new hotel will play a significant
role in developing a mixed-use destination, featuring commercial facilities,
restaurants, and entertainment areas.