Jabal Omar says Alinma Makkah completes acquisition of assets

Jabal Omar Development Company said that Alinma Makkah fund has completed the acquisition of assets worth SAR 6 billion from Jabal Omar.

The deal is expected to have a positive impact on financial statements for Q4 2017, the real estate developer said in a bourse statement.

In March, Jabal Omar had sold some of its assets at the Makkah development project to Alinma Investment Co. at a total value of SAR 6 billion, Argaam reported.

The assets included three hotels (Makkah Conrad, Hilton Makkah, Hyatt Regency Makkah) and Al Khalil Shopping Center.

The latest deal is part of Jabal Omar’s five-month memorandum of understanding (MoU) that it signed with Alinma Investment in August 2016 to set up a fund to sell and lease back the properties.

Alinma will re-lease the assets to Jabal Omar for 10 years, while the developer will retain the right to re-purchase these assets after five years from the fund’s 10-year term.

The fund is set to acquire some of Jabal Omar’s Makkah-based income-generating assets, which include a total of five hotels and four shopping centers.