Saudi Ceramic signs land plot deal worth SAR 55.9 mln in Riyadh

Saudi Ceramic office

Saudi Ceramic Co. signed today, July 14, an agreement to purchase a land plot, located in the new industrial area in Riyadh, adjacent to the company's central warehouses, for SAR 55.9 million, the company said in a bourse filing.

The land plot, which spans 111,827 square meters (sqm), will support the company's strategic plans and boost the warehouses’ storage capacity.

The deal will be financed through a Murabaha loan, covering 70% of the total purchase amount, and the remaining amount will be covered from the company's own resources.

Saudi Ceramic will pay the land price according to a certified bank cheque, delivered to the seller upon completion of ownership transfer of the lands’ title deeds, without incurring any brokers or commission.

In addition, the company is committed to pay the real estate tax in accordance with the regulations.

The deal will have a positive financial impact on the company in the interim condensed consolidated financial statements for Q3 2021, in the cash item, non-current assets item, and loans item.

The statement clarified that Saudi Pan Gulf Holding Co. is the seller, noting that there are no related parties.

The deal was done with the owner directly without the presence of an intermediary, the company highlighted.

It confirmed that the value of acquiring the land is less than the average of three evaluations obtained from licensed valuers. The average value of the evaluations submitted amounted to SAR 59.3 million.