Masar inks deal to sell 5 land plots for SAR 628.5M

Umm Al Qura for Development and Construction Co. (Masar) signed, on July 27, agreements to sell five land plots at the Masar Destination project in Makkah for SAR 628.46 million (excluding taxes and fees, which will be borne by the buyer).

The two plots span 15,570 square meters, the company said in a statement to Tadawul.

The parties to the deal include Masar, Alinma Development I Co. Ltd. and Alinma Development II Co. Ltd. – special purpose vehicles of Alinma Makkah Real Estate Fund that is fully owned by Masar and Saqeefah Al-Asima Co., an affiliate of Mohammad Al Habib & Partners Real Estate Co.

Masar noted that the book value of the asset is SAR 341.81 million, adding that the transaction aims at executing the development strategy for Masar Destination through the development of five hospitality towers by the buyer.

It expects the transactions to have a positive impact on liquidity and financial performance. The funds will go to financing the working capital and existing projects.

According to Argaam, the deals will result in a capital gain of SAR 286.7 million.