Sulaiman Al Habib’s subsidiary signs SAR 69 mln deal to purchase 12 land plots in Riyadh

Logo of Dr. Sulaiman Al Habib Medical Services Group

Dr. Sulaiman Al Habib Medical Services Group’s (HMG) subsidiary Al Marakez Al Awwalyah for Healthcare Co. signed an agreement today, July 1, with Wajahat Al Hamra for Investment Co. (related party) to purchase 12 adjacent land plots in Riyadh for SAR 69.04 million, excluding the real estate transaction tax.

The price will be paid to the seller upon transferring the ownership of the title deeds of lands to the buyer, the company said, adding the agreement was signed directly by the two parties without brokers or commissions.

The main terms of the deal include:

1) The land purchase price will be paid through demand draft cheques to be collected by the seller upon completion of ownership transfer of the lands’ title deeds.

2) This purchase is directly between the two parties without any brokers or commission.

3) The buyer will pay the real-estate tax following the applicable laws and regulation.

4) If the group is unable to obtain the approval of the general assembly on this agreement in accordance with the relevant regulations, then this agreement is considered void. The situation between the seller and the buyer will be restored to the previous state before this agreement, with the buyer returning the sold plot to the seller if he has received it, while the seller will return the total price received to the buyer without any responsibility on the buyer.

The transaction will be funded from the group’s internal sources.

Details of any future developments will be announced in due course.

The financial impact of this transaction will be reflected in the interim consolidated financial statements for Q3 2021 by an increase in the item (non-current assets) as of Sept. 30, 2021.

Furthermore, company Chairman Sulaiman Abdulaziz Al Habib is a related party with a direct interest, while board member Hisham Sulaiman Al Habib has an indirect interest.

According to the statement, the asset was purchased at the seller acquisition cost of SAR 69.04 million. This price is lower than three valuations obtained from independent valuators licensed by the Saudi Authority for Accredited Valuers before the conclusion of the transaction, with an average value of SAR 91.66 million.

The transaction was concluded within the normal course of business and did not include any preferential benefits.

The agreement will be presented to the next general assembly, the statement noted.