Masar Sells Three Land Plots in Makkah for SAR 239.8M

Umm Al Qura for Development and Construction Co., known as Masar, signed three agreements to sell three land plots within its Masar Destination project in Makkah for SAR 239.8 million, the company said in a bourse filing.

The plots are located in Zone 3 of the development, a mixed-use area near the Grand Mosque. Masar did not disclose the buyers or the exact size of each plot in the statement.

The Masar Destination project spans roughly 1.4 million square meters and includes residential, hotel, and commercial components. The company has been developing it in phases, with some sections already completed and operational. Selling land parcels generates cash that Masar can use to fund further construction or reduce debt.

This is not the first land sale within the project. Masar has previously sold plots in other zones during earlier stages. Each sale provides a read on demand for real estate in Makkah, where land prices have stayed elevated because of limited supply near the holy sites.

For Masar, the SAR 239.8 million transaction adds to its revenue stream. The company recorded revenue of SAR 1.1 billion in its latest fiscal year, according to its annual report. The sale will be booked as revenue upon final transfer, the filing indicated.

The stock did not react sharply to the news. Shares of Masar closed unchanged on the Saudi exchange the day of the announcement.

Investors watching the stock will track how quickly Masar sells the remaining plots in Zone 3 and whether buyers include hospitality operators or residential developers. The pace of monetization of the Masar Destination project is one of the key valuation drivers for the company, given the large capital tied up in the land bank.