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Logo of Tihama Advertising and Public Relations Co.
Tihama Education Co., a unit of Tihama Advertising and Public Relations Co., inked agreements to lease 14 retail units in airports operated by Cluster 2 Airports Co., according to a statement to Tadawul.
The retail branches will be operated under the WH Smith brand and Tihama Education will lease them for a period of three years.
The total value of the minimum guaranteed rent, including the value added tax (VAT) and service charges over the contract term, amounts to SAR 5.12 million, or a share in revenue at 10%, whichever is higher.
The 14 new stores will develop the existing successful partnership between Tihama and WH Smith, in addition to expanding the range of units operated under WH Smith brand franchise, which includes retail units at King Abdulaziz International Airport in Jeddah and King Khalid International Airport in Riyadh.
The relevant financial impact of the deal will be recorded in the group’s consolidated financial statements until end of contract, the statement noted, adding that the deal included no related parties.
In February, Tihama announced that its subsidiary, Tihama Education, signed a non-binding memorandum of understanding (MoU) with Cluster 2 Airports to launch 14 retail branches in airports, according to Argaam.
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