Red Sea Housing Services Company has abandoned the housing construction project it had planned for employees of companies operating in King Abdullah Economic City (KAEC) in Rabigh, north of Jeddah.
Red Sea Housing had announced the construction of a housing facility to accommodate employees of companies that operate with KAEC on March 31.
“The decision to terminate the project comes as a result of changes in certain economic conditions” Red Sea Housing stated about the project developments.
In addition, there have been changes in some of the key factors that were taken into consideration when the decision was made to construct the housing facility, which could significantly affect the targeted financial viability of the project, Red Sea Housing added.
According to the announcement that was posted by Red Sea Housing on Tadawul, the company had planned to construct an inclusive housing camp, with a maximum capacity of 5,000 tenants, over an area of 150,000 sqm in KAEC, at an estimated cost of SR50 million.
The company had previously announced that the project has reached 25 percent completion, having invested a total of SR11.93 million to date in carrying out the requisite engineering consultancies and studies to obtain the necessary construction permits, in addition to site preparation and infrastructure works, construction of the project boundary wall, and annual lease payments for the previous period.
The company has reached a preliminary agreement with KAEC, which will be signed over the coming weeks, to hand over the leased land plot in its current condition, without any additional financial liabilities on either party.
Any additional related material information will be disclosed in due course, Red Sea Housing added.
Red Sea Housing had announced the construction of a housing facility to accommodate employees of companies that operate with KAEC on March 31.
“The decision to terminate the project comes as a result of changes in certain economic conditions” Red Sea Housing stated about the project developments.
In addition, there have been changes in some of the key factors that were taken into consideration when the decision was made to construct the housing facility, which could significantly affect the targeted financial viability of the project, Red Sea Housing added.
According to the announcement that was posted by Red Sea Housing on Tadawul, the company had planned to construct an inclusive housing camp, with a maximum capacity of 5,000 tenants, over an area of 150,000 sqm in KAEC, at an estimated cost of SR50 million.
The company had previously announced that the project has reached 25 percent completion, having invested a total of SR11.93 million to date in carrying out the requisite engineering consultancies and studies to obtain the necessary construction permits, in addition to site preparation and infrastructure works, construction of the project boundary wall, and annual lease payments for the previous period.
The company has reached a preliminary agreement with KAEC, which will be signed over the coming weeks, to hand over the leased land plot in its current condition, without any additional financial liabilities on either party.
Any additional related material information will be disclosed in due course, Red Sea Housing added.
