SASCO signs MoU with AlJazira Cap to sell 10 sites for SAR 400 mln, expects SAR 218 mln in capital gains

A SASCO station

Saudi Automotive Services Co.'s (SASCO) board of directors agreed to sign a binding memorandum of understanding (MoU), ending June 30, 2022, with AlJazira Capital to sell 10 of its owned sites for SAR 400 million, according to a bourse statement today, Feb. 8.

SASCO will sell the sites to AlJazira Capital, after it establishes an investment fund and gets the necessary approvals for acquisition. SASCO will lease back these sites for 10 years.

SASCO provided promissory notes equivalent to the rental value of three years as guarantees. They will renew automatically until the end of the contract.

The service provider expects to generate capital gains of approximately SAR 218 million from the sale process. The final impact will be determined after completing the regulatory procedures and transfer of title deeds to favor of the fund's subsidiary.

Updates will be duly revealed, the statement added.

In December, SASCO decided not to complete the deal signed with Falcom Financial Services to sell some of its sites to the latter, Argaam reported.

At the time, company noted that it will continue to attract offers from other parties.