Mouwasat, Knowledge Economic City ink SAR 12 mln land deal

Mouwasat Medical Services Co. on Wednesday signed an agreement with Knowledge Economic City (KEC) to purchase a land plot in the latter’s project located in Madina for SAR 12 million.

The land value will be paid in two equal tranches, with the first one made immediately upon signing the agreement, both firms said in separate bourse filing on Thursday.

The second tranche will be paid, when Mouwasat receives the land transfer contract.

The medical service provider will build an accommodation for its staff in Madina at an estimated cost of SAR 60 million, as part of its medical project in Madina, which was announced on Jan. 23, 2017.

Mouwasat added that it expects the related financial impact to reflect on non-current assets in Q1 2019.

The medical service provider added that no related parties are involved in the deal.

On the other hand, KEC said it expects a gross profit of SAR 7.8 million from the land sale, adding that the gain will be entirely recognized in Q1 2019 income statement.