Tihama's unit amends lease contract for retail spaces in King Khalid International Airport

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. announced that its subsidiary, Tihama Education Co. signed today, Feb. 19, an agreement with Riyadh Airports Co. to amend the lease contract for retail spaces in King Khalid International Airport (KKIA), according to a statement to Tadawul.

As per the agreement, the lease terms of two existing units leased by Tihama Education at Riyadh’s KKIA will be amended. This is in addition to the leasing of a new retail site, bringing the total number to three retail spaces leased and operated by the firm at the airport.

Tihama will operate these units under the WH Smith brand franchise, which will serve passengers across the terminal, including departures, arrivals as well as domestic and international travelers.

The opening of the new unit will contribute to developing the existing successful partnership between Tihama and WH Smith. This is besides expanding the range of units operating under the WH Smith brand franchise, which also includes retail units at King Abdulaziz International Airport in Jeddah.

The total value of the minimum guaranteed rent for the three-year contract term is SAR 6.9 million, or a share in revenues at 19% in the first year, 20% in the second year and 21.5% in the third year, whichever is higher. This is in addition to a marketing percentage of 1% from actual revenues.

The company also said it will continue to record sales from the already-operating units within the group's consolidated financial statements until contract expiry. As for the new additional unit, it will depend on the sales performance between commencement of operations and end of the contract. Tihama also noted that there are no related parties.