Riyadh - Mubasher: Sumou Real Estate Company entered into a project development management agreement with Arch 3 Real Estate Development Company on 1 July 2026 for a significant mixed-use development in Jeddah.

Acting on behalf of the Arch Real Estate Development Fund 3, Sumou will oversee the comprehensive lifecycle of the project, which encompasses a total built-up area of approximately 57,000 square meters. The agreement establishes a multifaceted fee structure for Sumou, covering development management, marketing, and brokerage services over a three-year period.

The newly announced partnership centers on a prime land parcel in Jeddah spanning 6,394 square meters. Under the terms of the deal, Sumou Real Estate is tasked with the development of a high-density, mixed-use building.

This project represents a substantial undertaking for the firm, as the total built-up area is projected to reach nearly 57,000 square meters, indicating a vertical development strategy designed to maximize the utility of the urban site.

Sumou’s scope of work is extensive and covers the entire value chain of real estate development. The company will be responsible for managing all development phases, beginning with preliminary feasibility studies and architectural designs.

Furthermore, Sumou will handle the complex process of securing all necessary government permits and licenses required to bring the project to fruition.

Beyond the construction and technical management phases, the company is also mandated to lead the commercialization of the project, including the marketing and final sale of the real estate units.

The financial framework of the contract is structured to provide Sumou with diverse revenue streams based on project milestones and performance.

According to the disclosure, Sumou Real Estate will receive a development management fee equivalent to 10% of the total contracting and construction costs.

In addition to these management fees, the company is entitled to a marketing fee representing 3% of the project’s total sales value. A further real estate brokerage commission of 2.50% of sales has also been stipulated in the contract.

The duration of the agreement is set for 36 months, with the timeline officially commencing from the date the off-plan sale license is issued. This timeline aligns with standard industry practices for large-scale mixed-use developments, allowing for the completion of construction and the subsequent handover of units.

Regarding the financial impact, Sumou Real Estate anticipates that this project will have a positive influence on its financial results. The company expects the revenue generated from the management and marketing fees to begin reflecting in its financial statements once work on the project commences.

This agreement underscores the listed company’s strategy of leveraging its technical expertise to manage third-party funds and developments, thereby diversifying its income through service-based fees rather than solely through direct asset ownership.

The developer received the off-plan sales license for the the Al Dahiya Residence project in Makkah Al Mukarramah. This approval follows the previously established agreement with Al Dahiya Group for Real Estate Development and Investment to manage the superstructure development of the residential site.