Investment and Real Estate Development 2023 was a year of preparation and planning for ARDCO , through which we solidified our role as a major player in the real estate development sector in Riyadh. Our efforts this year were crowned by the success in attracting highly competent professionals in the field of investment and real estate development , reflecting positively on investor confidence in the company. We have also introduced real estate development fees for the first time in our history , expected to contribute no less than 10% of our total recurring income in the coming years. We have also conducted a detailed study of all assets and lands owned by ARDCO in order to identify development and investment opportunities with the aim of maximizing total shareholder return and increasing operating efficiency , or make the decision to exit if they are not compatible with our new directions and strategy. Partnerships As part of our endeavor to strengthen our position in the business sector , ARDCO focuses on adopting best practices through building strategic partnerships with key players in both the local and international context. Through this approach , we will be able to achieve the maximum benefit for all stakeholders , guided by our firm conviction in the importance of investing in developing capabilities , as well as by our strong commitment to transferring knowledge , exchanging know-how , and establishing fruitful partnerships with global organizations with extensive experience across various sectors. Among the notable steps we took in this context was the efforts to execute Dirah JV in partnership with Riyadh Holding Company. This agreement represents the type of ideal partnership that our company seeks to achieve , as it aims to develop pioneering projects that contribute to enriching the real estate sector and enhancing the quality of life within the communities in which we operate. We also signed a 25-year framework agreement with Misk Schools , a strategic step aimed at strengthening the educational sector and supporting sustainable development. This partnership allows us to contribute to the development of educational infrastructure and provide high-quality educational facilities aimed at enabling future generations , emphasizing our effective role in supporting and promoting development in various sectors. Key Achievements With the consistent development and remarkable growth we are witnessing in Riyadh , along with the steady increase in the number of residents and visitors , many regional companies have begun to shift their regional headquarters to the capital. This paves the way for us to begin implementing our real estate development and investment strategy on the ground in 2023 , where we accomplished the following: • Prepared a detailed engineering and financial study on the car auction property and the undeveloped land of the technical services property , in which key opportunities were identified to potentially maximize the return on our investment in these properties. • Signed a framework agreement with the Misk Foundation to develop schools throughout the Kingdom of Saudi Arabia through a BTS model , achieving an annual return of at least 8% annually.
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