Jabal Omar invests in-kind share of SAR 1 bln in Alinma fund

Jabal Omar Development Co. has invested an in-kind share of SAR 1 billion--to be deducted from the sale price--in Alinma Makkah Real Estate Fund, the real estate developer said in a statement to Saudi bourse, Tadawul.

The relevant financial impact will be seen in the earnings of Q4 2017.

In August 2016, Jabal Omar signed a five-month memorandum of understanding (MoU) with Alinma Investment to establish a fund that would sell and lease back real estate assets.

In March, Jabal Omar sold some of its assets at the Makkah development project to Alinma Investment Co. for a total value of SAR 6 billion. The assets included three hotels (Makkah Conrad, Hilton Makkah, Hyatt Regency Makkah) and Al Khalil Shopping Center. Alinma will re-lease the assets to Jabal Omar for 10 years, while the developer retains the right to re-purchase these assets after five years from the fund’s 10-year term, data compiled by Argaam showed.