Ladun Investment and Asbar Sign Deal for Riyadh Project

Ladun Investment Company secures a final development deal with Asbar Financial for a $107 million mixed-use project in Riyadh. The 48-month venture integrates luxury housing, hospitality, retail, and commercial office space across four plots.

Saudi-listed developer Ladun Investment Company has formalized a major development agreement with Asbar Financial to build a comprehensive mixed-use complex in Riyadh. The total outlay for the scheme is estimated at SAR 339 million (approximately $107 million), marking a notable increase from the preliminary SAR 250 million investment outlined in an initial memorandum of understanding signed earlier in April.  

Under the terms of the binding arrangement, Ladun will function as the primary real estate developer across the entire life cycle of the development. The contract formalizes the framework agreed upon during preliminary negotiations and clearly delineates the company’s executive mandate. Ladun's scope of work spans preliminary economic and financial feasibility assessments, urban design coordination, development planning, on-site construction oversight, and the administration of marketing and sales operations.

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Spanning four designated land plots in the capital, the multi-asset urban project is planned to deliver an integrated blend of premium residential units, hospitality venues, commercial office facilities, and retail environments. The design aims to capture rising demand for dynamic live-work-play destinations within Riyadh’s rapidly expanding real estate landscape. Progress toward on-ground execution remains subject to obtaining all necessary statutory clearances, including off-plan sales authorizations and local regulatory permits.

The agreement specifies a 48-month timeline for construction and completion, beginning from the official contract signing date. In exchange for its developer services, Ladun will receive a 10% management fee based on overall project expenditure, excluding the baseline cost of the land. Furthermore, the contract incorporates performance-based financial incentives linked to developmental milestones, including potential bonus returns if the project surpasses an 18% target internal rate of return (IRR).

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This contract solidifies Ladun’s expanding footprint in the kingdom’s real estate and contracting sectors. Backed by decades of operation in Saudi Arabia, the company continues to play an active role in urban regeneration, infrastructure, and housing initiatives aligned with national growth targets. By transitioning from a preliminary understanding to a binding project pact, both Ladun and Asbar Financial position the Riyadh scheme to contribute high-caliber commercial and residential inventory to the capital's evolving property pipeline.