Armah, Banan signs MoU to develop 6 sports clubs

Logos of Armah Sports Co. and Banan Real Estate Co.

Armah Sports Co. signed a memorandum of understanding (MoU) with Banan Real Estate Co. to develop six fitness clubs, within five years, by establishing a real estate fund.

Banan will manage the financing and structure of the fund, the two companies said in separate statements to Tadawul, noting that the MoU spans one year.

For more news and details on the projects

Banan will establish a real estate fund and negotiate with financial companies licensed by the Capital Market Authority and relevant authorities to appoint the fund manager and complete the appointment of service providers for the fund.

Both companies expect a positive financial impact following the launch of the fund and the start of the new fitness clubs. This will generate revenues from operating additional fitness clubs. Subsequently, it will strengthen the company’s financial position, the statement said.

There are no related parties to the deal, it added.

The aim of the agreement is to add a new source for financing future projects in addition to the current sources to achieve the projected targeted growth and returns, Banan said.