Jabal Omar Development Company announces selling a land plot in its project located in Makkah

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