Adeer signs tower marketing deal worth 18% of annual revenue

Adeer Real Estate Co. signed a contract June 11 with Areeb Al-Mutatawirah Real Estate Co. to exclusively market and sell a 47-story mixed-use tower, the company said in a regulatory filing.

The contract value is equivalent to about 18% of Adeer's latest annual revenue, the disclosure added. Adeer did not disclose a specific figure in the filing, nor did it name the tower's location or completion timeline.

The agreement covers marketing and sales rights for all units in the building, including commercial, residential, and hospitality space. Areeb Al-Mutatawirah is the developer of the project.

Adeer shares traded flat on the Saudi Exchange on the day of the announcement. The stock is down roughly 15% year-to-date, underperforming the Tadawul All Share Index.

The deal gives Adeer a near-term fee pipeline without the capital commitment of a development project. Investors will watch for booking rates and revenue recognition timelines in subsequent quarterly filings.

Adeer's last annual report showed revenue of SAR 42 million. An 18% equivalent contract would imply the marketing mandate is worth about SAR 7.6 million in potential fees, depending on sales velocity and the fee structure.

The signing follows a quiet period for Adeer, which had not announced a new mandate since its Q1 earnings report in April.