Dar Al-Arkan liquidity reaches SAR 3 bln, says chairman

Dar Alarkan Real Estate Development Co., which currently has a liquidity of SAR 3 billion, has decided to reduce sales of undeveloped lands after repaying loan installments, said Yousef Al-Shalash, chairman of the company.

The Saudi developer is planning to use its unutilized lands in building residential complexes and malls, to generate an annual fixed income, Al-Shalash told Al Arabiya TV.

"We're targeting 50 percent of income from renting residential complexes and malls, and 50 percent from developing lands and residential units to cushion against income volatility," he added.

Dar Al-Arkan is unlikely to secure new loans in 2015. The company will repay its $450 million loan in the first quarter of 2015, he added.

According to data available on Argaam, the developer recently posted a 26 percent drop year-on-year in net profit to SAR 115.6 million for the fourth quarter of 2014.