Arabian Centres Co. (Cenomi Centers) announces the sale of Sahara Plaza in King Fahd District in Riyadh for SAR 200 million
| Element List | Explanation |
|---|---|
| Introduction | Arabian Centres Co. (“Cenomi Centers” or “the company”) announces that it has completed the sale of Sahara Plaza in King Fahd District in Riyadh, on King Abdullah Road, for SAR 200 million and is the fourth to be sold as part of the company’s program to sell an identified portfolio of non-core assets worth around SAR 2 billion. |
| Transaction Details | Sale of a Sahara Plaza in King Fahd District in Riyadh, on King Abdullah Road, with 12,540 sqm area, for SAR 200 million (excluding the Real Estate Transaction Tax and the Brokerage Fees). |
| Transaction Value | SAR 200 million (excluding the Real Estate Transaction Tax and the Brokerage Fees). |
| Transaction Terms | Transfer of the title deed within 45 days from the signing date can be extended to an additional 30 days upon agreement of both parties.
The title deed must be free of any mortgage, legal, or financial obligation and free of lease contracts. |
| Parties of the Transaction | Seller: Arabian Centres Co. “Cenomi Centers”
Buyer: Alistithmar for Financial Securities and Brokerage Company (Alistithmar Capital) |
| Transaction Funding Method | N/A |
| Transaction Execution Date | 2024-02-01 Corresponding to 1445-07-20 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | Commercial Shopping Centre in the city of Riyadh. |
| Asset Book Value | The book value of this investment in the company’s statements amounted to 99 million riyals as of September 30, 2023. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | None. |
| Transaction reasons | This transaction is part of the company’s strategy and program to sell an identified portfolio of non-core assets worth around SAR 2 billion.
Sahara Plaza, a single tenant department store, is no longer aligned with the strategic direction of the company which aims to cement Cenomi Centers leadership position as the premier developer and operator of flagship and lifestyle destinations in the Kingdom of Saudi Arabia. |
| Expected Impact of the Transaction on the Company and Its Operations | Profits from the Sahara Plaza sale total SAR 79 million based on the fair value of the asset as of September 30, 2023. The revenue impact of the sale will be marginal at SAR 5 million per year.
The financial impact of the transaction is expected to appear in the Company’s financial statements for the first quarter of its fiscal year 2024 (Q1-24). |
| Details of Using The Proceeds of the Asset Sale | The funds from this transaction will be used to bolster liquidity and support the balance sheet of the company. |
| Related Parties | None. |
| Attached Documents |
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