Let me explain
Sumou Real Estate announced on Tadawul three agreements with Saudi Downtown, wholly owned by the Public Investment Fund, to develop residential projects in Downtown Al Khobar: a high-rise residential tower on about 4,800 m2 of land; mid-rise residential buildings north of the Boulevard on 28,346 m2; and mid-rise residential buildings south of the Boulevard on 28,292 m2. Each agreement runs for 48 months. Saudi Downtown contributes the land in kind, while Sumou develops, builds, markets and sells, with a partial investment and the rest funded from off-plan sales. Its fees are 6.5% of development costs, 2% of sales and 32% of each project's net profit. What it means for engineers: new residential projects entering design and construction in Al Khobar over 48 months. No contract value, floor count, unit count or architect has been announced yet. Which serves Downtown Al Khobar better: one residential tower or mid-rise buildings?