stc sells land in Al Khobar for SAR 1.38 bln, expects SAR 1.29 bln positive impact

Logo of stc

stc sold, on Jan. 17, a vacant land plot in Al Murjan, Al Khobar, for SAR 1.378 billion (excluding real estate transaction tax and brokerage fees), the telco said in a statement to Tadawul.

It added that the 4.1 million square meters (sqm) land was sold at SAR 336 per sqm, through a public auction.

The deal includes paying a non-refundable deposit worth SAR 10 million, as well as a SAR 1.368 billion promissory note for stc.

The land was sold to Hasan Abdulrahman Alqahtani, the statement said, noting that the asset book value reaches SAR 82 million.

The sale will have a positive impact of SAR 1.296 billion on the telco's consolidated profit and loss statement once all related procedures are completed, which is expected within 120 days from the transaction execution date.

In line with the stc’s strategy on maximizing assets return, and supporting capital recycling to strengthen the telco's ability to invest in new domains, the company adopted a strategy for its land bank, which revolves around four main pillars, namely selling, leasing, developing, and retaining.

The deal proceeds will be used to support stc in achieving its growth and expansion strategy, along with maximizing shareholders’ equity through increasing and diversifying its investments and seizing the expected growth opportunities in the telecommunication and information technology sectors in the Kingdom and the region.

Any material developments will be announced in due course, the company said.