Arabian Plastic Industrial Co. Announces Asset Lease A land lease contract with the Saudi Authority for Industrial Cities and Technology Zones "MODON in the value of SR 5.1M
Arabian Plastic Industrial company announces the successful conclusion of land lease agreement with MODON in Industrial area of Al-Kharj, Riyadh. Total land area is 34,270.68 sqm
Transaction Details
A land lease contract with the Saudi Authority for Industrial Cities and Technology Zones "MODON", the land is located in the industrial area of Al-Kharj city - Riyadh, Saudi Arabia. Annual rental value is 68,541 Saudi riyals, equivalent to 1.4 million Saudi riyals for a period of 20 years (excluding VAT).
Transaction Value
SR 5.1M
Transaction Terms
Twenty Years Lease Contract
Parties of the Transaction
Arabian Plastic Industrial company & Saudi Authority for Industrial Cities and Technology Zones "MODON
Transaction Execution Date
2022-10-30 Corresponding to 1444-04-05
Description of the Business of the Asset forming the Subject Matter of the Transaction
Leased Industrial land
Transaction reasons
APICO plans to have a new plant to fulfill the growth and demand from central and eastern regions of Kingdom
Expected Impact of the Transaction on the Company and Its Operations
The new expansion is expected to add 6,500+ MT in production capacity. The financial impact of the project is expected to start upon the completion of developments and start of operations. Furthermore, this project is expected to increase the revenue by 40% over first 3 years of operations
Related Parties
N/A
Additional Information
Announcements for any material developments related to the project will be made in due course.
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