Emaar EC, NAVA ink 2 leases worth SAR 21.6M

Logo of King Abdullah Economic City 

Emaar The Economic City Co. (Emaar EC) signed on Oct. 7, two leases with National Automotive & Vehicles Academy (NAVA) for offices and units in a building.

The contracts are valued at SAR 21.63 million, as the office lease agreement amounted to SAR 18.49 million and the unit lease totalled SAR 3.14 million, the company said in a statement on Tadawul.

One of the contracts is for offices and the other for units in Building B02 located on Entaj Street, Industrial Valley in King Abdullah Economic City (KAEC).

They will support the academic learning activities, including retail, laboratory, and workshops. It will provide a pioneering academy dedicated to developing the knowledge and technical skills of the local workforce, to localize jobs and technical expertise in automotive and vehicle manufacturing and maintenance.

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The five-year contracts are extendable for an additional period agreed upon by both parties. This will be done by submitting a written notice to the lessor at least six months before the end of the lease period.

The two agreements are subject to final approval from the Economic Cities and Special Zones Authority (ECZA).

Emaar EC explained that the deal is aimed at using the available assets in a way that benefits its revenues. The company expects the revenues to be affected as of the fourth quarter of 2024, under the terms and conditions of the two contracts and the applicable financial reporting standards.

The Public Investment Fund (PIF) owns 25% of Emaar EC and 91.8% of CEER National Automotive Co. In addition, it has an indirect ownership in Lucid Ltd. CEER and Lucid are shareholders in NAVA.