Saudi's Nesma wins $1.6bn contract for The Avenues-Riyadh Phase 1
The contractor will build a mall, parking, gardens, and internal roads for the first phase of the kingdom's $3.5bn project
Saudi Arabia-based contracting company, Nesma & Partners, headed by founder and president, Imad Gholmieh, has won a $1.6bn (SAR6.2bn) construction contract for Phase 1 of the kingdom’s the $3.5bn (SAR13bn) The Avenue – Riyadh from Shomoul Holding Company — part of Kuwait Bourse-listed real estate firm, Mabanee.
In a stock market filing, Mabanee revealed that the contract was awarded by Shomuld Commercial Mall Co.
The company said scope of work for phase 1 of The Avenues – Riyadh comprises the mall, parking area, gardens, and internals roads.
A letter of intent (LoT) was signed between the two companies, as part of which $18.1 (SAR68m) was paid to Nesma & Partners as “a prelude to signing the final contract to commence the construction work of the project”.
Set to become the largest leisure and commercial destination in the kingdom, The Avenues – Riyadh once developed will include space for 1,300 stores, in addition to five multi-purpose towers consisting of hotels, exhibition, conference halls, residential apartments, offices, and medical facilities.
In March 2019, American hotel operator, Hilton signed a contract with Shomoul Holding Company to develop and operate four hotels at The Avenues – Riyadh.
According to information published on Mabanee’s website, the project is scheduled to be inaugurated in 2022.