| Introduction |
The Company owns a 25% undivided stake in a plot of land located in Alasala District, Jeddah, with a total area of 124,880 square meters. The land was acquired to establish a mall thereon in partnership with other co-owners, as announced on March 23, 2017. The Company would like to announce to its shareholders the details of this Project, which the company and its partners will establish on the said land. |
| Board Resolution date for this project |
2019-02-11 Corresponding to 1440-06-06 |
| Project Start Date |
within quarter 1, 2019 |
| Project Cost |
The expected total estimated cost of the Project, including the land value, will be around SR 873 million, according to reports received from the developing partner. |
| Project Funding |
The Project will be financed mainly by bank loans to be obtained by the Project Company, and partly by self-financial resources of the project partners. |
| Expected Project End Date |
Based on the reports received from the developing partner, it is expected that the project construction works will be completed by the end of quarter 4, 2021. |
| Expected impact on the company’s financial statements |
Upon commencement of operation, the Project is expected to have a positive impact on the results of the company. Details of such positive financial impact will be announcement in due course. |
| Expected impact date on the company’s financial statements |
N/A |
| Expected date for the pilot production of the project |
N/A |
| Duration of the pilot production of the project |
N/A |
| Expected date for the commercial production of the project |
The Project is expected to be operational in quarter 1, 2022. |
| Executing Party/Other Party in the Project/Contract |
N/A |
| Related Parties |
Mohammad Abdulaziz AlHabib & Partners Real Estate Investment Co. (Developing Partner). |
| Additional Information |
It is worth mentioning that a limited liability company has been established by the land owners (Aljawhara Alkubra Company, "the Project Company"), in which the partners own shares in proportion to their respective shares in the project land. The building permit has been obtained by the developing partner, which is currently in the process of soliciting the main contractor to carry out the project construction work. Any material developments relating the project will be disclosed once it occurs . |
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