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Knowledge Economic City inks nearly SAR 289m deals with Elkhereiji for Al Alya project

Knowledge Economic City inks nearly SAR 289m deals with Elkhereiji for Al Alya project
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Riyadh – Mubasher: Knowledge Economic City announced signing two contracts with Elkhereiji Commerce and Contracting Company for Al Alya project at a combined value of SAR 288.60 million.

The two deals were awarded and signed on 4 April 2024, according to separate bourse disclosures.

The first contract is valued at SAR 171.12 million and holds a duration of 20 months starting from 5 May 2024. The deal covers the electromechanical, finishing, and landscaping works for eight residential buildings comprising 264 apartments within the first phase of the mixed-use project.

For this deal, the contractor's dues will be paid in monthly instalments based on work progress. Meanwhile, the financial impact will be represented in the cash outflow for the amount payable to the contractor over a contract period starting from the end of May 2024.

The second contract between Knowledge Economic City and ElKhereiji is worth SAR 117.47 million and holds a tenor of 24 months starting from the issuance of the construction permits.

This deal covers the execution of all contracting works for a group of additional four residential buildings consisting of 132 residential apartments of different sizes within the first phase of Al Alya project.

The dues will also be paid in monthly instalments, while the financial impact will be represented in the cash outflow for the amount payable to the contractor over the 24 months.

Al Alya project includes two groups of offices designed with flexible workspaces in addition to a four-star hotel with 130 rooms managed by the Hyatt International Group under the Hyatt Centric brand.

The project has another four-star hotel apartments with 420 apartments managed by the Hyatt International Group under the Hyatt House brand.

In 2023, the net losses of Knowledge Economic City deepened to SAR 45.55 million while the revenues surged to SAR 66.86 million.