First Avenue for Real Estate Development Company has announced that it had signed an addendum to its contract with Asas Makeen Real Estate for a key residential project in Al Hada District, setting the total project cost at about US $22.9mn.

The addendum was signed after completing detailed designs and defining technical specifications and quality standards, said First Avenue in its filing to Saudi bourse Tadawul.

The residential project is located on a land plot with a total area of 23,199.09sqm. The agreement follows the company’s earlier announcement in July last year, regarding the contract for the project’s execution.

The development aims to establish a townhouse residential compound within a fully integrated urban environment. The scope of the contract includes the full execution of the project on a turnkey basis, in accordance with the approved plans, and in compliance with the technical specifications and quality standards set for the project.

The total cost includes fees payable to Asas Makeen at a rate of 14.5%, it added.