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Supplementary Announcement from JODC regarding the Signing of a Memorandum of Understanding with the Alinma Investment to establish a Fund for the Sale and Leaseback of Real Estate Assets

Further to the company’s announcement published on the Saudi Stock Exchange’s website “Tadawul” on 22/11/1437 AH, corresponding to 25/8/2016, JODC announced that on Tuesday 22/6/1438 AH, corresponding to 21/3/2017, it has signed a sale contract of three hotels: Concorde Makkah Hotel, Hilton Suites Makkah Hotel, and Hyatt Regency Hotel; in addition to Souk Al Khalil, located within its project in Makkah to Alinma Investment, with a value equivalent to six billion riyals. The contract comes as a supplementary to the memorandum of understanding signed by the company with Alinma Investment, under which a Real Estate Investment Traded Fund (REIT) will be established, after obtaining the necessary approvals from the Capital Market Authority from the Fund Manager.

Based on the agreement, JODC will lease and operate the mentioned assets after selling them to the Fund for a period of ten years. As stated by the agreement, JODC will be entitled to repurchase the assets mentioned above, starting from the end of the fifth year of the Fund’s term, which is determined by ten years, until the end of the tenth year. The company indicated that part of the sales proceeds will be used for the payment of the existing bank obligations, and the remaining amount will be used to implement the project’s strategy.

It is expected that the financial impact will positively show in the revenues and shareholders’ equity in the current fiscal year, upon the completion of the Fund’s establishment; in addition to Alinma Investment’s conclusion of the assets acquisition process.

Other Press Releases

“Jabal Omar” and “Al Arabiya” sign a strategic partnership to invest and market the media leasing in the Jabal Omar project

Jabal Omar Development Co. signed today (Sunday) a strategic partnership agreement with Al-Arabia OOH (Al-Arabiya); To invest and market the media leasing in the Jabal Omar project, which is one of the most important development projects in the central area of Makkah Al-Mukarramah. The announcement of the agreement took place during the signing ceremony at […]

Jabal Omar Revenues grew by 189% to reach SAR 317 million compared to the first quarter of 2022

Hospitality revenues grew by 179% for the first quarter of 2023 to reach SAR 268 million, a record improvement compared to SAR 96 million for the same period in 2022, driven by the success of the company strategy to improve the performance of the hospitality portfolio, besides benefiting from government initiatives related to the Hajj […]

JODC Shareholders Approve Landmark Alinma Fund Debt to Equity Transaction, Set to Issue 225 Million New Shares in Return for Settling SAR 5.3 billion in Outstanding Debt Owed to the Fund

Makkah, KSA; 28 August 2022: Jabal Omar Development Company (“JODC” or the “Company”) (Tadawul: 4250), one of the largest real estate developers in Saudi Arabia and the master developer of the iconic mega mixed-used project in Makkah, Jabal Omar, received shareholder approval for issuing new ordinary shares in the JODC to the unitholders of the […]

JODC’s H1 2022 Revenue Surges to Near Pre-Pandemic Levels on Recovery in Umrah Activity

Government’s exceptional management of the pandemic and easing of the restrictions on pilgrimage activities led to a significant increase in the number of pilgrims Revenue in H1 was SAR 391 million, more than tripling year on year Sustained improvement in gross profit driven by Company’s transformation strategy Company expects to bring in new sources of […]
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