The Jabal Omar Development Company (JODC) has announced that it sold a parcel of land within its project in Makkah city via a public auction for $138m. The real estate group said that the 2,600.32sqm plot was sold for $53,055 per sqm and is infrastructure-enabled and fully developed.

The plot is located close to the Grand Mosque, making it one of the most highly sought-after areas in Makkah, said the company in its statement. The land plot has easy access to the main roads in central Makkah and can be used for the development of residential, commercial and hospitality properties, the firm noted.

The move comes in line with the developer’s holistic financial transformation strategy that seeks to strengthen its capital structure, the company said.

“The successful outcome of the auction is testament to investors’ confidence in the long-term viability and scalability of Jabal Omar’s masterplan and proves that there is strong appetite for investment in residential, commercial and hospitality properties in Makkah. While this strategic land sale will enable us to move forward with the completion of the critical phases in our project, it will also fast-track the development of the areas in proximity to the Grand Mosque, one of the busiest and highly demanded areas in Makkah during the Hajj and Umrah season,” said JODC CEO Khalid Al Amoudi.

The land was purchased by Aqarat Development Company, stated JODC in its filing to the Saudi bourse Tadawul. The JODC said it appointed Adeer, a Saudi-based real estate service provider, to act as its real estate broker to manage the sale.