Logo of Ladun Investment Co.
Ladun Investment Co.‘s board of directors signed on Nov. 7 an investment agreement with Musharaka Capital (a related party) to jointly establish a real estate development fund for a real estate project within Jabal Omar development project in Makkah, at a total value of SAR 1.45 billion.
In a statement on Tadawul, Ladun pointed out that the five-year contract is renewable for an additional two years.
The contract aims at investing in the establishment of a real estate development fund with a capital of SAR 525 million and obtaining the necessary regulatory approvals for its establishment through Musharaka Capital, a company licensed by the Capital Market Authority (CMA).
Under the agreement, a 3,881-square-meter land plot in central Makkah will be acquired from Jabal Omar Development Co. for SAR 659.88 million, excluding tax and brokerage fees.
Musharaka Capital, being the fund’s manager, is liable for providing the funding required for the project.
Meanwhile, Ladun will assume the role of the project developer, marketer, and implementer.
Moreover, the purpose of the fund is to develop, market, and construct a residential and hotel tower, featuring complementary services.
Ladun stated that the board of directors approved contributing SAR 33 million to the fund from the company's own resources.
The statement added that the deal will have a positive financial impact on the company, to be reflected from the start of the project until its completion and the closure of the fund (2025 to 2029).
Deputy Board Chairman of Ladun, Ibrahim Al-Assaf, is a related party, being also Managing Director and CEO of Musharaka Capital. The contract was concluded within the ordinary course of doing business and did not entail any preferential benefits, Ladun noted.
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}