Emaar EC sells industrial land for SAR 366.8 mln

Logo of King Abdullah Economic City (KAEC)

Emaar The Economic City (Emaar EC) signed a contract worth SAR 366.8 million to sell an undeveloped industrial land plot to Dar Al Himmah Projects Co. Ltd., one of the Public Investment Fund's (PIF) subsidiaries, Zamil Real Estate Co., and Abdullah Ibrahim Alkhorayef Sons Co.

In a statement to Tadawul, the company added that the sale is to develop all secondary infrastructures and create an industrial logistic hub in the Special Economic Zone (SEZ).

The land value will be paid in payments over two years, the company said, adding that the asset book value reached SAR 16.4 million (historic cost).

The company will start to recognize revenue starting from the third quarter of 2023, as per the terms and conditions of the contract and applicable financial reporting standards.

The proceeds will be directed primarily towards the development of infrastructure, operational working capital and fulfillment of certain financial obligations.

The PIF is a related party, the company noted.