Al Akaria sells 2 land lots in Madinah, Riyadh for SAR 85.6M

Saudi Real Estate Co. (Al Akaria) announced the sale of two land plots in Madinah and Riyadh for SAR 85.64 million, excluding real estate transaction tax and brokerage fees.

In a statement to Tadawul, the company said that Madinah’s land in Al AlHarra Al Sharqiyah District, with a total area of 63,500 square meters, was sold to Sultan Zakari Al Zakari for SAR 69.8 million.

The 2,241-square-meter plot in Riyadh, located in Al Zahraa District, was sold to Al-Mahan Investment Co. for SAR 15.8 million.

The book values of the lands in Madinah and Riyadh are SAR 10.5 million and SAR 2.53 million, respectively.

The proceeds from the sale will be used to finance the company's future projects, the statement said, indicating that the deal is expected to positively impact the company's financial results upon the completion of the sale.

The divestment of non-core lands is a strategic step aligned with Al Akaria’s approved strategy in 2023, which focuses on maximizing shareholder returns, diversifying income sources, and achieving a balanced and healthy capital structure. This divestment is a key enabler to achieve these strategic objectives by providing the necessary liquidity to launch new developmental projects.

The sale was conducted through an electronic public auction held on Feb. 5, with no related parties participating.

According to data compiled by Argaam, Al Akaria realized a capital gain of SAR 72.61 million from selling the lands.