Jabal Omar sells land plot for SAR 659.9M

Logo of Jabal Omar Development Co.

Jabal Omar Development Co. sold on Nov. 7 a land plot in its Makkah-based project spanning 3,881 square meters (sq m) for SAR 659.9 million, the company said in a Tadawul statement.

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The transaction parties are Jabal Omar and Musharaka Capital, the statement said, adding that the asset book value is SAR 165.5 million, inclusive of development costs.

The sale aims to execute the company's plans to enhance its capital structure and reduce financing costs.

The deal is expected to have a positive impact on the company's financial results after the completion of the transaction.

The sale proceeds will be used for a loan repayment, the developer said, noting that there are no related parties to the deal.

In a separate statement, Ladun Investment Co. announced that its board of directors approved the signing of an investment agreement worth SAR 1.45 billion to establish a real estate development fund with Musharaka Capital (a related party) for a real estate project at Jabal Omar development in Makkah.

The deal includes purchasing a land plot spanning 3,881 sq m in the central area of Makkah from Jabal Omar Development Co. for SAR 659.9 million, excluding tax and brokerage fees.