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First Avenue for Real Estate Development has signed a development agreement with Jadwa Al-Shorfa Real Estate Fund, with a development fee of 15% of project costs, estimated at SAR 185 million. The partnership combines First Avenue's project management expertise with Jadwa Al-Shorfa's investment capital. This agreement reflects a wider trend in Saudi Arabia, where professional developers and real estate funds collaborate to share risks and ensure timely project execution. The deal strengthens First Avenue's presence in the regional market and showcases growing investor confidence in structured real estate development projects.
First Avenue for Real Estate Development has entered into a formal development agreement with the Jadwa Al-Shorfa Real Estate Fund. Under the terms of the deal, First Avenue will manage the development of the project and receive a development fee equivalent to 15% of the actual project costs. The total estimated cost of the project stands at around SAR 185 million. Advertisement
This partnership follows a series of strategic collaborations by First Avenue in the past few years, aimed at expanding its portfolio in the Saudi real estate sector. The deal highlights the growing interest of regional real estate funds in structured development projects, where professional developers manage execution while funds provide investment capital. Jadwa Al-Shorfa Real Estate Fund, known for investing in high-value projects across Saudi Arabia, will contribute the necessary financial backing while leveraging First Avenue's expertise to ensure project completion on schedule.
Industry analysts note that development agreements like this are increasingly common in the region, as they help balance risk and reward between investors and developers. First Avenue's experience in managing large-scale projects is expected to bring operational efficiency and adherence to timelines, potentially increasing returns for the fund.
Source Reuters
5th Jun, 2025
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