Jabal Omar sells land plot in Makkah project for SAR 517.5 mln

Logo of Jabal Omar Development Co.

Jabal Omar Development Co. (JODC) sold, on Sept. 29, a 2,600 square meters land plot in Jabal Omar Project in Makkah to Aqarat Real Estate Development Co. for SAR 517.5 million, the developer said in a bourse filing today, Sept. 30.

The buyer paid the real estate transaction tax and brokerage fees, the statement noted.

The book value of land stood at SAR 110.84 million, including development value.

The sale proceeds will be used to complete the construction work of the critical phases in the project, in addition to partial debt repayment.

The deal included no related parties and is forecast to reflect positively on the company’s financial results after transferring ownership.

Jabal Omar launched several initiatives to improve the capital restructuring via cutting the outstanding financial liabilities and accelerating the remaining construction works in the project, which will likely boost cash flows.

The land plot was sold via a public auction in Jeddah, which received an overwhelming turnout from investors.

“The success of the auction implies the trust of investors and real estate developers in the company’s project, being one of Makkah flagship realty projects. This strategic deal will further help the company accelerate the completion of the critical phases in our project,” company Chief Executive Officer (CEO) Khalid Al Amoudi said in a statement.

The deal will also fast-track the development of the areas in proximity to the Grand Mosque, one of the busiest and highly demanded areas in Makkah during the Hajj and Umrah season, the CEO added.