Alandalus constructs office building in Riyadh at SAR 140M

Alandalus Property Co. headquarters

Alandalus Property Co. announced today, Sept. 8, the establishment of an office building project on King Salman Road in Al-Malqa district, Riyadh.

This will be carried out through Mawarid Al-Tamyouz Co., a real estate limited liability company acquired recently by Alandalus, the company said in a statement to Tadawul.

The project cost is estimated at SAR 140 million, excluding the rental value of the land.

For more news and details on the projects

Mawarid Al-Tamyouz has a 30-year usufruct right under a lease contract for six adjacent lands in Al-Malqa neighborhood, spanning a total area of 5,700 square meters, the statement said, noting that two years had already passed before the acquisition.

A four-storey office building will be stablished on an estimated built-up area of 30,000 square meters and an estimated leasable area of 9,722 square meters.

Mawarid Al-Tamyouz is the lessee, while Alandalus is the project developer.

The deal will be financed through the company's own resources or bank facilities, the statement added, indicating that the construction will begin during the fourth quarter of 2024 and is expected to be completed during the first quarter of 2027. The project's trial operation is likely to begin during the second quarter of 2027.

The financial impact is expected to reflect upon the project’s commercial operation during the second quarter of 2027. There are no related parties to the transaction.

The project comes within the framework of Alandalus’ strategy and expansion plans for the purpose of increasing revenues. Any other substantial developments related to the project will be disclosed in due course.