Armah signs land lease to construct two sports clubs in Riyadh

Logo of Armah Sports Co.

Armah Sports Co. signed on Dec. 14 a land lease contract to construct and operate two sports clubs—one for men and the other for women—under the brand name “B_FIT”, the company said in a statement to Tadawul.

The land, located on King Abdullah Road, Al-Quds District (Riyadh), has an average annual leasing value of SAR 2.5 million per year, the statement said, noting that the total contract value is SAR 50 million, excluding VAT. 

The leased land area is 5,766 square meters and the duration of the lease is 21.5 years from the date of signing the contract. The contract duration includes a grace period of one and a half years that does not entail any leasing value.

This investment is part of the company's strategy to expand the major locations to generate the growth and returns that achieve the company's strategy.

The financial impact of this contract is expected to begin when the project is complete and operational, the statement said.

There are no related parties to the deal, Armah said, adding that it will announce any material developments in due course.