Al Hammadi buys land in Riyadh for SAR 115.6 mln to build hospital

Al Hammadi Hospital in Al Suwaidi, Riyadh

Al Hammadi Company for Development and Investment signed a contract to purchase a 19,202 square meter (sqm) land plot, for SAR 115.6 million excluding the real estate transaction tax and commission, to build a hospital.

In a statement to Tadawul, Al Hammadi said the land is located in Narjes, North of King Salman Road in Riyadh. It was purchased at SAR 6,020 per sqm.

Transaction terms include paying 80% of the price within 21 days to the seller Al Narjes Community Real Estate Developer.

The purchase will be financed through internal cash flow and bank loans, the statement noted.

The transaction is expected to increase Al Hammadi’s non-current assets in Q2 2022.

In September, Al Hammadi’s board of directors approved the construction of a new hospital to replace the current Al Hammadi Hospital Al Olaya at the cost of SAR 450 million.

The new hospital will have a capacity of 300 beds and 120 clinics, the company said at the time. It will provide general medical services, oncology treatment, treatment of sports injuries, and rehabilitation.