Riyadh - Mubasher: Saudi Real Estate Company announced on Tuesday that the ministry of commerce and investment has approved the license to establish Saudi Real Estate Construction Company a Saudi closed joint stock company.

The decision comes with reference to the announcement of Saudi Real Estate in February regarding the recommendation of consulting services to establish a company for contracting and building construction works, the company said in a statement to the Saudi Stock Exchange (Tadawul).

The new company will start with a capital of SAR 100 million, that consists of 10 million shares with par value of SAR 10 for each and all are common cash shares.

The Saudi Real Estate subscribed 60%, and it is expected that the capital of the new founded company will be reflected in the fourth quarter of 2016 in the Saudi Real Estate Company financial statements, while the capital will be financed through the cash flow from the operating activities.

Also Kaya Homes subscribed 40%, the activity of the company concentrated in building construction, building maintenance on a commercial basis and the company headquarters will be in the city of Riyadh.