Saudi Ceramics signs SAR 31.6 mln property sale deal, sees SAR 26.3 mln gains

Logo of Saudi Ceramics

Saudi Ceramic Co. (Saudi Ceramics) signed today, March 19, a property sale agreement for an asset in the Eastern Province at a value of SAR 31.6 million, excluding real estate transaction tax, according to a statement to Tadawul.

The property is built on a land of 5,728 square meters in Al-Rakah district, Al-Khobar.

Under the terms of the sale deal, the buyer will pay the full value of the property through a certified bank cheque upon the transfer of title. Also, Saudi Ceramics will not bear any expenses or commissions.

The asset, which is a building rented to third parties for showrooms, offices and warehouse, has a book value of SAR 5.26 million. The company sold the property as it does not complement its core activity.

The relevant financial impact will appear in the form of higher other revenue and capital gains at SAR 26.34 million.

The proceeds will be used to finance the company’s expansions and operating activities.

Saudi Ceramics and Mohammed Al-Arfaj are related parties, the statement added.

Saudi Ceramics will register the sale upon receiving the full amount from the buyer.