Saudi Parts Center purchases land for SAR 6.2 mln to build spare parts remanufacturing facility

Logo of Saudi Parts Center Co.

Saudi Parts Center Co. purchased two land plots in Riyadh Industrial City from Mawten Real Estate Co, for SAR 6.19 million, including SAR 294,910 in real estate tax, according to a bourse filing.

The land plots, spanning 9,194 square meters (sqm), are located in the Industrial Gate City, licensed by Saudi Authority for Industrial Cities and Technology Zones (Modon). They will be used in the company’s future business expansions.

The land purchase was paid from the company’s cash surplus for 2021 through a cheque.

The company plans to build a spare parts remanufacturing facility, in line with its strategy. In addition, the site will also include the comany's central warehouse and some administrative offices.

The relevant financial impact will appear in the form of increasing the value of fixed assets at 2021-end by 94%, compared to June 2021. The value of the purchased land accounted for 17% of the total shareholders’ equity as of December-end 2021.