Al Akaria incorporates Hodoud for title deed transfer from Alinma Al Akaria Fund

Logo of Saudi Real Estate Company

Saudi Real Estate Co. (Al Akaria) announced the incorporation of Hodoud Real Estate Investment (sole proprietorship), a fully-owned subsidiary with a paid-up capital of SAR 10,000 divided into 1,000 equal shares (SAR 10 per share).

The limited liability company’s registration certificate number is 101836057, issued by the Ministry of Commerce.

In a statement to Tadawul, Al Akaria stated that Hodoud commenced operations as of Oct. 25, 2022.

The developer subscribed to Hodoud’s full shares in order to transfer the lands’ title deed ownership from Alinma Al Akaria Real Estate Fund to the Riyadh-based Hodoud Real Estate Investment.

The financial implications will be reflected in Q4 2022.

The company said that the completion rate reached 95% with expectations of project completion by Nov. 25, 2022, noting that there were costs related to the incorporation of Hodoud Real Estate Investment.

The reasons for the delay in announcement were due to study of the options available with regard to the transfer of the lands’ ownership invested earlier by Al Alkaria (in-kind investment) and assessment of the impact of real estate transaction tax on the transfer of these shares, upon which the company shall benefit from the exemptions mentioned in Clause A/17 of the Article 3 of the Real Estate Transaction Tax Regulations.

The financial implications will be reflected in Q4 2022, Al Akaria said.

According to the data available with Argaam, Al Alkaria recovered in February SAR 35 million from the cash investment (subscription) amount of SAR 40 million in Alinma Al Akaria Real Estate Fund.

In November 2020, Al Akaria received a notice of the termination of Alinma Al Akaria Fund for Real Estate Development, based on its request, to close the fund for the financial restructuring of the fund-linked projects.