Arabian Centers Company “Sinomy Centers” announced today, Sunday, the completion of the sale of a plot of land with an area of 115,094.89 square meters located in Al-Raed neighborhood in Riyadh, on King Khalid Road, the intersection of King Abdullah Road, next to the Under-construction Jewel of Riyadh Mall project.
Senomi Centers said, in a statement on Tadawul Saudi Arabia, that it had agreed on a final price of 5,600 riyals per square meter, bringing the value of the deal to 644.5 million Saudi riyals, excluding real estate transaction tax and pursuit fees.
She added that the buyer is Sumou Real Estate Company.
She explained that the sold plot is the second plot of land sold by the company within the framework of its program to sell a portfolio of non-core assets, with an estimated total market value of about two billion riyals.
The book value of the land in the company’s lists amounted to 381.7 million riyals as of September 30, 2022.
Studies indicated that this land is more suitable for residential and office development projects, and does not support the company’s strategic expansion plans, which are focused on developing modern destinations according to the highest international standards.
Sinomi Centers said that the company’s income statement will be positively affected by the value of capital gains resulting from the deal, amounting to 262.8 million riyals. It is expected that this effect will emerge from the deal during the financial period ending on December 31, 2022 AD, or the following one, which ends on March 31, 2023.
It added that it will use the proceeds from the sale of the asset to strengthen the company’s financial position and enhance future growth plans.
The sale comes on the background of the first deal of the program, during which the company sold a land of 17,733 square meters in the Olaya neighborhood in Riyadh, for about 230.5 million riyals.