Saudi German Hospital signs SAR 7 mln lease agreement for Jeddah hospital

Middle East Healthcare Co. (Saudi German Hospital) signed a lease contract with Bait Al Batterjee College for Medical Sciences and Technology Co., a related party, worth SAR 7 million, it said in a bourse statement on Monday.

Under the contract, Saudi German Hospital will rent a hospital building from Bait Al Batterjee College for Medical Sciences and Technology Co., specializing in Gynecology and Obstetrics surgery, located in Jeddah.

The hospital has a preliminary license from the Ministry of Health and is fully equipped, the statement added.

The duration of the contract is four years, starting April 1, 2021 till March 31, 2025, with the possibility of renewal.

The company will be provided with a grace period of two years from the date of validity of the contract without any conditions or preferential terms.

The cost of rent for the third and fourth year will be SAR 3.5 million each.

The expected financial impact of the contract will appear after opening and operating the hospital in Q2 2021, the statement said, adding that any further developments will be announced in due course.

Chairman of the board Sobhi Abdul Jalil Batterjee, Dr. Makarem Sobhi Abdul Jalil Batterjee (vice chairman of the board), and board members Dr. Khaled Abdul Jalil Batterjee and Sultan Sobhi Abdul Jalil Batterjee are related parties.