Jabal Omar Development Company announces the Signing of a Memorandum of Understanding with Albilad Capital to sell Residential Units in the Second Phase of its Project in Makkah
Jabal Omar Development Company (JODC) announces the signing of a memorandum of understanding with Albilad Capital (licensed by the Capital Market Authority “CMA”), which is the investment banking arm for Bank Albilad, on Thursday 1/8/1438 – 27/4/2017, for a period of 4 months from the signature date; in order to sell 93 residential units in the phase two of Jabal Omar project to the real estate fund being established by Albilad Capital Company for this purpose; as the fund, which is planned to be established after obtaining the necessary approvals from the CMA, signing the sale and management contracts, and collecting the necessary funds, will acquire the residential units with an approximate value equivalent to one billion and two hundred million Saudi Riyals (to be determined after the completion of the due diligence inspection), and it is expected that the all acquisition procedures will be completed during the current fiscal year. Furthermore, the agreement also included that JODC will extend the lease period of the residential units that have been sold to Albilad Hospitality Fund, which amount to 55 units, from one to five years.
The sale proceeds will be used to implement the project’s strategy and the financial impact will be positive on the company’s revenues and shareholders’ equity during the current fiscal year.
Knowing that His Excellency the Chairman Mr. Abdulaziz Alsubeaei is a relevant party and that the corporate governance standards will be applied with respect to this deal, the matter will be presented before the company’s next General Assembly for approval.