Riyadh Development buys 2 real estate assets from Remat for SAR 1.4B by issuing new shares

Logo of Riyadh Development Co.

Riyadh Development Co. signed today, Sept. 1, an agreement to acquire two real estate assets from Remat Al-Riyadh Development Co. through a capital increase aimed at the issuance of new shares to the seller in exchange for these in-kind assets.

In a statement to Tadawul, Riyadh Development said the total agreed value of the seller's assets is SAR 1.4 billion, excluding real estate transaction tax.

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The purchased assets are a 787,480-square-meter (sqm) land plot north of Dammam Road, Al-Rimal District, and a 214,000-sqm plot south of the Northern Ring Road, Al-Murooj District.  

Upon completion, shareholders' ownership will decrease from 100% to 76%, affecting voting rights.

The transaction is subject to obtaining regulatory approvals and the extraordinary general meeting’s (EGM) voting, as outlined in the agreement. The deal includes customary warranties from both parties.

Riyadh Developement appointed SNB Capital as financial advisor, with Abu Himed, Al Sheikh, Al Haqbani, and Clifford Chance Co. named legal advisors.

The transaction involves a related party, as Remat Al-Riyadh is fully owned by Riyadh Municipality, represented by Riyadh Development’s Chairman.

The agreement allows either party to terminate the deal if it is not completed by Aug. 31, 2025, or any other mutually agreed date.

Termination is also possible if either party materially breaches the agreement, fails to fulfill obligations, or if the transaction is not completed by the agreed date.

Approvals required include non-objection or clearance from the General Authority for Competition (GAC), approval from the Capital Market Authority (CMA), Tadawul’s go-ahead for listing the new shares, and the EGM’s green light.

Riyadh Development stated this agreement aligns with its strategy to maximize shareholder value and accelerate its strategic goals announced in early 2023, under the slogan "Investing for Growth."