Jabal Omar Development Company announces selling a land plot in its project located in Makkah
| Element List | Explanation |
|---|---|
| Transaction Details | On 29 September 2021, Jabal Omar Development Company sell a land plot with a total area of 2,600 sqm located within its project in Makkah |
| Transaction Value | SR 517,463,680 in addition to the buyer bearing the real estate transaction tax and brokerage fees |
| Transaction Terms | No transaction terms |
| Parties of the Transaction | Jabal Omar Development Company and Aqarat Development Company |
| Transaction Funding Method | Not Applicable |
| Transaction Execution Date | 2021-09-29 Corresponding to 1443-02-22 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | Parcel of land |
| Asset Book Value | SR 110, 835, 057 Including development value |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | Not Applicable |
| Transaction reasons | Execute the company's plans to restructure its financial obligations and complete the construction work of the outstanding phases |
| Expected Impact of the Transaction on the Company and Its Operations | The deal is expected to have a positive impact on the company's financial results after the completion of the process of land deed’s transfer |
| Details of Using The Proceeds of the Asset Sale | The sale proceeds will be used to complete the construction work of the outstanding phases of project and to repay part of the syndicated loan |
| Related Parties | No related parties |
| Additional Information | It is worth noting that the company is working on a number of initiatives aimed at improving the capital structure by restricting and reducing existing financial obligations, in addition to accelerating the completion of the remaining construction works in the phases under development, which is expected to contribute to improving the company’s cash flow |
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