Sumou signs 35-year land lease deal in Jeddah

Sumou Real Estate Co. signed on May 4 a long-term lease, development, and operation contract with Saudi Airlines Real Estate Development Company (SARED) to lease a 78,374-square-meter land plot in Jeddah for 35 years.

In a statement to Tadawul, the company said the project involves developing an integrated multi-purpose scheme in the southwestern corner of the masterplan. The contract term will start from the date of the building permit issuance or 18 months after signing, whichever comes first.

The annual rent amounts to SAR 11.76 million, excluding VAT, with an average increase of 21% every five lease years. Rent will become due upon the issuance of the building permit or 18 months after signing the contract, whichever comes first.

The relevant financial impact will likely appear from the date of land handover, and there are no related parties.