Riyadh Development says asset valuation for Ad Dirah district development stands at SAR 1.5B

Logo of Riyadh Development Co.

Riyadh Development Co. said that the average asset valuation exercise for the proposed partnership with Riyadh Holding Co. to develop Ad Dirah district amounts to SAR 1.5 billion (fair value based on latest valuation).

The new entity’s portfolio comprises commercial centers on a total area of nearly 170,000 square meters, with total leasable areas close to 209,000 sqm.

Riyadh Holding’s stake in the new entity stands at SAR 796 million, or 53.66%, through Al Maigliah Commercial Center (SAR 642 million) and Al-Deera Market (SAR 154 million).

On the financial impact of the proposed partnership, Riyadh Development added the target is to achieve higher revenue growth in the medium term compared to the previous market revenues in 2023, with an average growth rate of 12%.

More details will be announced upon completion of the asset transfer, which is likely to take place in H2 2024.