Jarir signs contract to sell land plot to Jarir Real Estate for SAR 97.9 mln

A branch of Jarir Marketing

Jarir Marketing Co. signed a contract to sell a piece of land it owns in Riyadh to Jarir Real Estate Co., a related party, for a value of SAR 97.9 million, the company said in a bourse filing.

The sale will result in a capital gain of SAR 38.5 million that will be reflected on Q4 2021 financials, said the company, adding that the sale proceeds will be used in its operating activities. 

Jarir Real Estate is 100%-owned indirectly by some board members of Jarir Marketing, namely, Muhammad bin Abdulrahman Alagil, Abdullah bin Abdulrahman Alagil, Abdul Karim bin Abdulrahman Alagil, Nasser bin Abdulrahman Alagil, and Chairman of the audit committee, Abdulsalam bin Abdulrahman Alagil.

Jarir received an offer from the buyer to purchase a piece of land within the company's assets, which was intended for the development of a project that was canceled.

After considering the offer in light of the valuations conducted for the land by three accredited valuers, the company considered that accepting this offer is in the best of its interest.

The Saudi-listed firm also confirmed that the contract did not include any preferential terms, ensuring that none of the members of the members who has an interest participated in the discussions or the approval of the contract.

The contract will be ratified during the next general assembly meeting, the statement added.