Jabal Omar plans to boost revenue by sale-on-deposit deals: CEO

04/04/2018 Argaam

 

Jabal Omar Development Co. (JODC) is expected to generate SAR 4 to 4.5 billion revenue from selling out Phase III of the Address Hotel project by sale-on-deposit arrangements, Al Arabiya TV has reported, citing CEO Yaser Al Sharif.

 

The model requires more flexible terms, compared to off-plan sale, and that is set to boost sales and cut the cost of finance, Al Sharif added.

 

Al Sharif said his company reported better results compared to peers, as a big portion of the company’s losses is non-recurring.

 

The company incurred SAR 250 million in losses from the early settlement of a SAR 4 billion loan obtained from the National Commercial Bank (NCB), besides paying all commissions and loan-related expenses.

 

It reported a net loss of SAR 601 million for the period ending Dec. 31, 2017 (eight month and 18 days), compared to a net profit of SAR 76.7 million in a comparable period in the earlier year.

 

“We are constructing 13,000 hotel apartments and villas and we have 2700 existing units; we are seeking more developments over the next three years”, Al Sharif said.

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