Saudi-based Sumou Real Estate Company has announced that it has awarded contracts to two local firms – International for Modern Industries Company and Modern Trains Company – for the construction of 412 residential villas in the port city of Jeddah.

The announcement comes following the transfer of the site by the National Housing Company for carrying out the preparatory work. The project is being implemented under the Khayala Housing Project (Dar Sumou) in co-ordination with the NHC, said the company in its filing to Saudi bourse Tadawul.

The financial impact of the agreement on the company’s result and revenues is expected to be positive effective from the current year till end of the project, it added.

In March, Sumou Real Estate Company announced signing a development management agreement for land located on Al Khobar Corniche with Sumou Holding Company.