Riyad Bank to book SAR 201 mln in capital gain from sale of land

Riyad Bank has signed an initial agreement on Dec. 30 to sell a plot of land in Jeddah at a rate of SAR 4,400 per square meter and totaling SAR 202.5 million, the bank said in a statement to the Saudi bourse, Tadawul, on Monday.

Riyad Bank expects a non-recurring capital gain of SAR 201 million as the book value of the land stands at SAR 1.4 million.

The sale, which was approved by Saudi Arabia’s central bank on Jan. 5, will be complete when the bank receives the full value of the land and the transfer of the ownership procedures is done. It noted that the buyer was not a related party of the bank.

The bank expects to book the financial impact from the sale in 2016.