Riyadh – Mubasher: Mouwasat Medical Services signed yesterday an agreement with Knowledge Economic City to buy a plot of land in al-Madīnah al-Munawwarah at SAR 50 million ($13.3 million) for developing the area and building a hospital, said the company in a bourse statement on Monday.

The land value will be paid in two installments, the company added, clarifying that the first SAR 40 million-installment will be made upon contract signature, while the second installment will be fulfilled upon the delivery of ownership document.

This lump sum amount was secured by a sharia-compliant credit facility granted by a local bank upon a promissory note that Mouwasat will start repayment on 31 December 2018.

The construction process will commence within six months as of the transfer of land and building licenses at an estimated initial cost of SAR 400 million.

The financial impact of this agreement will be achieved during the fourth quarter of 2016, the company concluded.