Jabal Omar sells SAR 1.4B land plot, achieves SAR 918.3M capital gain

Jabal Omar Development Co. signed today, Dec. 31, a contract to sell a plot of land to Durat Taibah Investment Co. within its Makkah project for a total value of SAR 1.35 billion, the company said in a statement to Tadawul.

The buyer will bear the real estate transaction tax and brokerage fees.

The book value of the land is SAR 432.32 million, including development costs. The plot covers an area of 7,503.4 square meters, the statement said, adding that there are no related parties involved in the deal.

The deal aims to implement the company’s strategy of improving its capital structure by reducing debt and funding ongoing projects. The transaction is expected to positively impact Jabal Omar’s financial results upon completion and the proceeds will be used to repay one of its loans and finance ongoing projects.

According to Argaam calculations, the company achieved a capital gain of SAR 918.28 million from the deal.