Jarir Marketing Company announces the sale of its building in Ahsa st. Riyadh for an amount of SR 71,428,571

Jarir Marketing Company announces the sale of its building located in Al Ahsa st. at Riyadh city for an amount of SR 71,428,571.

The buyer (Maceen logistics Projects Company) paid the full amount and the deed has been transferred to them on Saturday 22/06/2013, closing the deal.

According to the agreement, JMC will rent the whole building for 5 years in addition to renting the Jarir bookstore showroom located inside the building for 30 years to ensure its existence in the same location.

It's worth to mention that the book value of this building was SR 31, 098,393, which generating a capital profit amounting to SR 40,330,178. The financial impact of this agreement will be included in the results will be included in the financial statements of JMC starting from second quarter financial statement for year 2013 and distributed on the period of renting contract of the building.

Jarir is planning to use the cash generated from this deal to finance the expansion operations and opening new showrooms according to the plan announced earlier this year.

Its noteworthy that Jarir announced earlier its plan for opening 10 new showrooms during 2013, 2014 as part of the companys strategic plan to reach the largest number of consumers in all cities of Saudi Arabia.