BATIC affiliate acquires 41% stake in Saudi parking management firm

BATIC Investment and Logistics Co.’s affiliate, Arabian Security & Safety Services Co. Ltd (AMNCO), has completed the acquisition of a 40.6 percent stake in Saudi-based National Parking Company (Mawgif), the company said in a bourse statement.

AMNCO has acquired 35 percent direct interest in Mawgif in addition to an 8 percent indirect interest stake through its 70 percent subsidiary, AMNCO Facility Management Co.

AMNCO has issued SAR 65 million letters of guarantee covered by BATIC in favor of the Eastern Region Municipality for the purpose of implement two projects to the municipality for the establishing, developing and operating a multi-floor parking and smart parking in Dammam, Dhahran and Khobar.

Saudi Ministry of Municipal and Rural Affairs has recently approved awarding the two projects to Mawgif for a total of 19,000 parking spaces.

The contract’s term is 25 years with a grace period of 18 months for infrastructure against the total rental value for the entire period of the contract in favor of the municipality in the amount of SAR 1.24 billion as follows:

-Tender for setting up and operating three sites to establish multi-floor parking (allocating 25 percent of the building areas for investment business) with a total area of 11,300 square meters as well as smart ground parking on the sidewalks and streets in Dammam.
 
-Tender for setting up and operating three sites for the establishment of multi-floor parking (allocating 25 percent of the building areas for investment business) with a total area of 11,700 square meters as well as smart ground positions on the sidewalks and streets in the city of Dhahran and Khobar.

The financial impact of the deal is expected to reflect on financials for 2, 2019, the statement added.

The deal is a related party transaction, the company also said.