Saudi-based Retal Urban Development Company has reached an agreement with the National Housing Company (NHC) to jointly develop more than 1,100 residential units in the prime cities of Riyadh and Jeddah at a total investment of SR925 million ($246.4 million).

Under this deal, the duo will develop 366 residences in Zones 1 and 2 of Al Shafa Residential Land located in Riyadh at an estimated cost of SR290 million, according to a Retal filing to Saudi bourse Tadawul.

The project, which will come up over a 133,934-sq-m area, is expected to be completed in 2027.

On the South Jeddah project, Retal said it will build 803 residential units in the port city at an estimated cost of SR635 million. 

The Jeddah project, which will come up over a 209,483-sq-m area, will also be completed in 2027.

Both the projects will be funded through self-financing, off-plan sales and available facilities, said Retal in the bourse filing.

The projects are expected to have a positive impact on the company’s results post the start of sale and the project execution, it added.

Meanwhile, Retal has signed up one of its subsidiaries – Building Construction Company – to develop 352 residential units in the Sadayem suburb of Jeddah at an estimated cost of SR214 million.

The project, which will come up on a total area of 100,959 sq m, is due for completion in 2026.