Jabal Omar inks SAR 1 bln MoU with Albilad Capital

Jabal Omar Development Co. has inked a four-month memorandum of understanding (MoU) with Albilad Capital to sell 93 residential units in Jabal Omar phase 2 through a real estate investment fund (REIT) that the brokerage is setting up, Jabal Omar said in a statement to Tadawul on Thursday.

After obtaining regulatory approvals, Albilad’s REIT will acquire the units, which are worth SAR 1.2 billion (to be confirmed after the due diligence), within this fiscal year, the statement said.

The MoU also included an agreement to extend the leasing of 55 units previously sold to Albilad Capital for five years from one year.

The proceeds of this deal will fund the Jabal Omar’s project and the financial impact is expected to show in this year’s financial results.

Jabal Omar’s chairman of the Board Abdulaziz Subaie is a related party, and rules of governance have already been applied to the process, the statement added.