Sumou signs management contract with Arsh Real Estate

Sumou Real Estate Co. signed on July 1 a project development management contract with Arsh Real Estate on behalf of Arsh Real Estate Fund 3.

In a statement to Tadawul, Sumou said it will receive a development management fee equal to 10% of construction costs, a marketing fee of 3% of project’s total sales and a real estate brokerage commission of 2.5% of sales.

The project, located on a 6,394-sqm plot in Jeddah, involves the development of a mixed-use building with a total built-up area of approximately 57,000 sqm.

The company’s scope of work includes managing all development stages, from feasibility studies, design, and obtaining permits to the marketing and sale of the project’s real estate units.

The 36-month contract commences from the date the off-plan sales license is issued.

Sumou expects the project to have a positive impact on its financial results starting from the commencement of work, the statement noted.