Nofoth acquires land in Riyadh for SAR 22.1M

Logo of Nofoth Food Products Co.

Nofoth Food Products Co. acquired a mixed-use commercial and residential land in Hittin district, Riyadh, from Khalaf Rabah Al-Shammari, for SAR 22.1 million (excluding real estate transaction tax and brokerage fees).

In a statement to Tadawul, the company said that the step comes as part of its strategic plan to expand its operations and develop its headquarters.

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The purchase of the land, spanning an area of 1,580.37 square meters, will be financed from the company’s internal resources and the deal was concluded with no special conditions, the statement added.

The acquisition of the land will increase the company's fixed assets, positively reflecting in financial ratios such as return on assets (ROA). Additionally, the land is a strategic investment with the potential for future value appreciation, thereby enhancing the company's asset valuation and net worth, Nofoth noted.

Moreover, owning the property will allow the company to save on recurring rental costs and avoid future rental fluctuations, supporting its financial sustainability and bolstering its operational stability.

There are no related parties in this deal, the statement indicated.