Banan Real Estate acquires Riyadh commercial building for SAR 73.1 mln

Logo of Banan Real Estate

Nomu-listed Banan Real Estate Co. signed a contract to acquire a commercial building (Plaza 46) in Qurtoba district, Riyadh, for SAR 73.1 million, the company said in a bourse statement.

The total land area is 6,400 square meters (sqm) while the total rental area is 5,200 sqm with annual income of SAR 6 million.

The deal was partially financed, at SAR 36 million, from the facilities granted to the company by Arab National Bank (ANB), and an amount of SAR 26.57 million came from the facilities granted by Riyad Bank. The rest of the amount was financed from the cash flows available in the company.

The deal is intended to increase the company's real estate portfolio and is expected to have a positive impact on the company’s revenue starting from Q1 2022.

No related parties are included in the deal, the company said, anticipating that the administrative and legal procedures for the transfer of ownership of the property to the statutory authorities will be completed within 15 days from the date of this announcement.

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