Enma Alrawabi Company announces the purchase of buildings for a value of (180,000.000) one hundred and eighty million Saudi riyals, excluding taxes.
01/07/2024
| Element List | Explanation |
|---|---|
| Transaction Details | It has been agreed between Enma Al Rawabi Company and Al-Motaqadimah Schools Company to terminate the lease contract for the Hittin land in Riyadh (by mutual consent) that was signed on October 1, 2018, through buying out the buildings erected on the land for a value of (180,000,000) one hundred and eighty million Saudi riyals, excluding taxes. |
| Transaction Value | ((180,000,000) One hundred and eighty million Saudi riyals, excluding taxes. |
| Transaction Terms | Termination of the lease contract for the Hittin land in Riyadh that was signed on October 1, 2018 (by mutual consent), by purchasing the buildings erected on the land for a value of (180,000,000) one hundred and eighty million Saudi riyals, excluding taxes. |
| Parties of the Transaction | Enma Al Rawabi Company (Buyer)Al-Motaqadimah Schools Company (Seller) |
| Transaction Funding Method | The transaction will be financed through a loan for the value of (170,000,000) one hundred and seventy million Saudi riyals through a mortgage on the Hittin land. The remaining payment of (10,000,000) ten million Saudi riyals will be paid from the company’s own resources. |
| Transaction Execution Date | 2024-01-04 Corresponding to 1445-06-22 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | Educational Complex. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | There is no revenue from the buildings as they are under construction and in their final phases. |
| Transaction reasons | The purpose for the transaction is to optimize the use of the subject property by increasing the performance efficiency of the company’s real estate portfolio. |
| Expected Impact of the Transaction on the Company and Its Operations | High and best use of the property that will reflect positively by increasing the non-current assets item in the balance sheet for the year ending 31/12/2024 and the likelihood of increasing the rental revenues of the subject property. |
| Related Parties | No related parties involved in the transaction. |
| Additional Information | It is to be noted that the signing of the contract purchasing the buildings erected on the land from Al-Motaqadimah Schools Company is considered as a termination of the lease contract signed between Al-Motaqadimah Schools Company and Enma Al Rawabi Company on 01/10/2018, which had a term of twenty-five years and ends on 31/01/2044. |