Taiba buys commercial center in Riyadh for SAR 220 mln

Taiba Investments headquarters

Taiba Investments Co. entered into a purchase agreement, on June 9, with Mohammed I. Alsubeaei & Sons Investment Co. (MASIC) to acquire a commercial center in Riyadh for SAR 220 million.

The commercial center, spanning 16,517 square meters, is located in Al-Hamraa District, King Abdullah Road, Taiba said in a statement to Tadawul.

It consists of three floors, with ground for car parking and shops and mezzanine facility for the ground floor units, and first and second floors for office and service units.

Payment will be made upon the transfer of ownership of the commercial center to Taiba, the company noted, indicating that the deal will be self-financed in addition to the credit facilities granted to Taiba by the financial institutions.

The deal is intended to enhance the company's investments by purchasing revenue-generating assets with good returns that would benefit Taiba and its shareholders, the statement added.

The financial impact of this transaction will reflect through the increase in the investment properties item in the consolidated balance sheet for Q2 2022.

In the income statement, it will reflect through an increase in real estate sector revenue by the receivables from the leased units in the center for the accrued period.

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