Sumou Real Estate Co. Announces an update on Sumou Real Estate Company announces signing of infrastructure Development agreement for a land in Jeddah City with area of 707,254 sqm with Baitek Real Estate Company
| Element List | Explanation |
|---|---|
| Introduction | With reference to Sumou Real Estate Company’s announcement published on the Tadawul on 23/03/1446H, 26/09/2024G, regarding the signing of an infrastructure development management contract with Baitek Real Estate Company for a 707,254 m² plot of land in Jeddah on 25/09/2024G, 22/03/1446H. Sumou Real Estate Company announces that ownership of the project land has been transferred from Baitek Real Estate Company to Sumou Holding Company, a related party. As a result, the previous agreement with Baitek Real Estate Company was terminated, and Sumou Real Estate Company’s entitlements for the elapsed period under that agreement were settled. In addition, a new development agreement was signed with the new owner, Sumou Holding Company, on 22/11/1447H, 09/05/2026G. Under this agreement, Sumou Real Estate Company will receive development management fees of SAR 10,255,138, will be due in quarterly installments over a 24-month term starting from the date of issuance of the project’s off-plan sales license. The agreement is expected to have a positive financial impact starting from the date of issuance of the project’s off-plan sales license. |
| Previous Announcement | Sumou Real Estate Company announces signing of infrastructure Development agreement for a land in Jeddah City with area of 707,254 sqm with Baitek Real Estate Company |
| Date of Previous Announcement on Saudi Exchange’s Website | 2024-09-26 Corresponding to 1446-03-23 |
| Hyperlink to the Previous Announcement on the Saudi Exchange Website | Click Here |
| Latest Developments Of The Announced Event | Sumou Real Estate Company announces that ownership of the project land has been transferred from Baitek Real Estate Company to Sumou Holding Company, a related party. As a result, the previous agreement with Baitek Real Estate Company was terminated, and Sumou Real Estate Company’s entitlements for the elapsed period under that agreement were settled. In addition, a new development agreement was signed with the new owner, Sumou Holding Company, on 22/11/1447H, 09/05/2026G. Under this agreement, Sumou Real Estate Company will receive development management fees of SAR 10,255,138, will be due in quarterly installments over a 24-month term starting from the date of issuance of the project’s off-plan sales license. The agreement is expected to have a positive financial impact starting from the date of issuance of the project’s off-plan sales license. |
| Reasons For The Delay on The Date of The Event Previously Announced | N/A |
| The costs associated with the event, and if they have changed or not with indication of the reasons. | N/A |
| Delay consequences on the Company’s financial results | N/A |
| Additional Information | N/A |
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