Cenomi Centers sells land in Riyadh for SAR 644.5 mln

Logo of Cenomi Centers  

Cenomi Centers completed the sale of a vacant land plot for SAR 644.5 million (excluding real estate transaction tax and brokerage fees) to Sumou Holding Co. within its SAR 2 billion non-core asset land sale program, according to a statement to Tadawul.

The land plot, spanning 115,090 square meters (sqm), is located in Riyadh near the company’s new flagship project, Jawharat Al-Riyadh. The plot was sold for SAR 5,600 per sqm, the statement noted.

The transaction came on the back of the inaugural deal within the non-core asset land sale program, under which a 17,733 sqm site located in the Olaya district, Riyadh, was sold for SAR 230.5 million.

The net book value of the land plot on the company’s financial statements amounted to SAR 381.7 million as of Sep 30, 2022.

Studies indicated that this land plot was best suited for residential or office developments and does not support Cenomi Centers’ strategic expansion plans of developing best-in-class lifestyle destinations.

The capital gains of SAR 262.8 million, resulting from the deal will positively affect the company’s income statement and this impact will likely appear on the fiscal period ending Dec. 31, 2022, or the period ending March 31, 2023.

The sale proceeds will be utilized in strengthening the company’s financial position and future growth plans.

The deal included no related parties, the statement added.