Retal sells stake in Al Khobar land for new units in Remal Park Fund

Logo of Retal Urban Development Co.

Retal Urban Development Co. sold its 33.33% share in Al Khobar land for SAR 21.48 million to Remal Park Fund, an associate, in return for issuing new units in the fund in addition to the existing units owned by Retal.

In a statement to Tadawul, the company said that the deal was concluded between Retal and Remal Park Fund, which is managed by BLOMINVEST Saudi Arabia, without any preferential terms.

The company sold its share in the land located in Al Andalus District of Al Khobar, with a total area of 24,504 square meters. The deal aims to merge the land into the project owned by the fund and is being developed by Retal as a premium mixed-use (offices, residential, commercial, and hotel) complex.

The estimated book value of the asset is SAR 21.29 million, the company noted. It indicated that the transaction also seeks to increase the leasable area of the project to cater to the premium nature of the project, through merging the entire land of this transaction to the rest of the project’s land. This will reflect positively on both the company’s and the fund’s investment.

It is expected that the transaction will have a positive impact on Retal’s results for 2024 until 2028, represented in the increase in Retal’s investment returns through maximizing the fund’s returns and the development management fees for Retal.

The proceeds from the asset sale will be used in exchange for new units in the Remal Park Fund, the Saudi-listed firm remarked.

Chairman Abdullah Al-Fozan, Vice Chairman Ali Al-Fozan and board members Fozan Al-Fozan and Fahd Al-Moajil as well as Chief Development Officer Moustafa Tawfik are related parties, the statement added.