Abdullah Al Othaim Markets Company announces the signing a contract with the General Organization for Social Insurance to lease a land in the city of Dammam-KSA.
| Element List | Explanation |
|---|---|
| Introduction | Abdullah Al Othaim Markets Company “the Company” announces the signing of a contract with the General Organization for Social Insurance “the Organization” to lease a land owned by the Corporation located in the city of Dammam. |
| Date of Announcement of the Award | 2024-07-08 Corresponding to 1446-01-02 |
| Contract Subject Matter | Lease of land with a commercial Lounges built on it |
| The Entity with Which the Contract was Signed | General Organization for Social Insurance |
| Date of Signing the Contract | 2024-07-08 Corresponding to 1446-01-02 |
| Contract Value | SR (91,171,835) ninety-one million, one hundred seventy-one thousand, eight hundred and thirty-five riyals (excluding VAT). |
| Contract Details | 1) This is a renewal of the land lease contract entered into previously between the Company and the Organization for a period of (25) years Hijri which expires on 08/06/2028.
2) The new contract will be effective after the expiration of the current contract, starting on 09/06/2028, for a period of (15) years.
3) The leased land area is 49,782 forty-nine thousand, seven hundred and eighty-two square meters.
4) The annual rental value is SR (5,500,000) five million, five hundred thousand riyals, in addition to a compounded increase of 5% every three years. |
| Contract Duration | 15 Years. |
| Financial Impact and the Relevant Period | The financial impact of this contract will be positive on the Company’s results, and it is expected that the financial impact of the contract will be reflected starting as of its effective date . |
| Related Parties | Member of the Board of Directors Mr. Bandar Nasser Hamad Al Tamimi. |
| Additional Information | This transaction will be presented to the general assembly of the company’s shareholders for approval in accordance with the applicable regulations due to the presence of a related party. |
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