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KEC's Al Alyaa project sales top SAR 520 mln
KEC's Al Alyaa project in Madinah has booked over SAR 520 mln in contracted sales since launch. The residential development is key to the developer's near-term cash flow as it narrows losses on rising revenue.
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Knowledge Economic City Co. (KEC) said contracted sales at its Al Alyaa residential project in Madinah exceeded SAR 520 million. The mixed-use development, located near the Prince Mohammed bin Abdulaziz International Airport, includes villa clusters, apartment blocks, and commercial plots. KEC did not disclose a timeline for revenue recognition or a completion date for the project in its filing on the Saudi Exchange.
The figure covers contracts signed since the project's launch but excludes any sales from the commercial component, the company said. KEC, which is developing a 4.5 million square meter master-planned district around the airport, is relying on the project to drive near-term cash flow. The developer posted a net loss of SAR 86.2 million for the nine months through September, narrowing from a SAR 105.8 million loss a year earlier, as financing costs weighed on earnings even as revenue rose.
Al Alyaa is one of three residential projects KEC has underway in Madinah, with the others in earlier planning stages. The company's stock rose 1.1% on the Saudi Exchange on the announcement.