MASAR signs contract to sell land plot for SAR 145.1M

Umm Al Qura for Development and Construction Co. (MASAR) announced the signing of an agreement to sell a land plot within the Masar Destination development in Makkah for SAR 145.12 million, according to a Tadawul statement.

The transaction value excludes real estate transaction tax and any other fees payable by the buyer.

The plot spans 2,671.2 square meters (sqm) and was acquired by Jazeel Al-Binaa Co., a special purpose vehicle owned by a real estate fund managed by SEDCO Capital. The asset’s book value (BV) stands at SAR 76.5 million.

The transaction aims to implement the development strategy of the Masar Destination, with the buyer constructing a residential tower.

The proceeds from the asset sale will be used to finance working capital and ongoing projects, MASAR said.

The relevant financial impact of the deal will positively impact liquidity and the company’s financial results.

MASAR will realize a gain of SAR 68.62 million from the land sale, Argaam reported.