View United purchases, mortgages SAR 40.4M land in Riyadh

Logo of View United Real Estate Development Co. 

View United Real Estate Development Co. signed, on Feb. 20, a contract to purchase and mortgage a piece of land in Al Narjis neighborhood, north of Riyadh, at a value of SAR 40.37 million, excluding real estate transaction tax.

According to a statement to Tadawul, the residential land’s area is 8,971 square meters. The purchase was to build and develop residential units to sell.

The contract was signed with Ajyal Holding Co., the statement pointed out, adding that it will be financed through a Shariah-compliant bank facility agreement, announced on Feb. 13, as well as the company’s own resources.

The statement highlighted that the purchase is an investment decision with a significant financial impact on the development properties item during the development and implementation period. However, its impact is expected to be positive on revenues immediately upon the start of sales, either off-plan or direct, after obtaining the necessary approvals and licenses.

There are no related parties to the agreement.

According to data available on Argaam, View United earlier signed a Shariah-compliant credit facility agreement worth SAR 33.17 million with Bank Albilad to finance 80% of the purchase of land in Al Narjis.

The financed property was mortgaged in favor of Bank Albilad with a coverage ratio of not less than 125% of the total facilities, in addition a promissory note was issued by the company for the value of the facilities in favor of the bank.