Riyadh Development shareholders approve 31.58% capital hike to acquire 2 real estate assets

Logo of Riyadh Development Co.

Riyadh Development Co.’s shareholders approved increasing capital by 31.58% from SAR 1.78 billion to SAR 2.34 billion, during the extraordinary general meeting (EGM) held on Feb. 3. The capital top-up is aimed at facilitating the acquisition of two real estate assets owned by Remat Al-Riyadh Development Co.

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According to a statement to Tadawul, the company pointed out that 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, Riyadh.

The statement highlighted that 56.15 ordinary shares will be allocated to Remat Al-Riyadh Development Co., following the receipt of regulatory approvals, including approval on the terms of the agreement and the in-kind contribution between the company and Remat Al-Riyadh, dated Sep. 1, 2024.

In addition, amendment of Article (7) of the company's bylaws related to the company’s capital has to be approve, as well as authorizing the company's board, or any person authorized by the board, to issue any resolution or take any action necessary to implement the aforementioned decisions.

The statement further noted that the EGM approved the deals and contracts sealed between the company and Remat Al-Riyadh, in which Chairman Prince Faisal bin Abdulaziz bin Ayaf, has an indirect interest, as he is also Chairman of Remat Al-Riyadh.

This comes as part of the acquisition agreement and in-kind contribution concluded between Riyadh Development and Remat Al-Riyadh on Sept. 1, 2024.

Furthermore, the EGM approved amending Article 3 of the company's bylaws related to business objectives.

Riyadh Development signed, on Sept. 1, 2024, an agreement to acquire two real estate assets from Remat Al-Riyadh Development Co. through a capital increase aimed at issuing new shares to the seller in exchange for these in-kind assets, Argaam data showed.

The total agreed value of the seller's assets is SAR 1.4 billion, excluding real estate transaction tax.