Saudi-listed Sumou Real Estate Company, part of Sumou Holding, entered a tripartite deal to set up a real estate fund to develop projects worth 2 billion Saudi riyals ($533.20 million) nationwide.

The other two parties in the fund are AlJazira Capital and Sumou Global Investment Company, a related company.

Sumou will act as the developer of the projects and will receive a development fee of 10 percent of the development costs, the company said in a statement to the Saudi stock exchange on Tuesday.

The fund will acquire land in Riyadh to develop more than 800 residential units. Additionally, it will buy Sumou land plots in Dammam and Khobar for SAR 90.67 million.

On Sunday, Sumou Investment, also a part of Sumou Holding, had inked a quadripartite agreement valued at $2 billion with Egypt’s MIDAR and local firms ADEER International and Hassan Allam Properties to invest in real estate projects in Egypt.

Read more: Real estate investment funds represent 25% of Saudi Arabia's managed assets - CMA chief

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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