Banan Signs Contract to Purchase Commercial Building for SR 73 mln

Banan Real Estate Company announced on Thursday the signing of a contract for the purchase of a commercial building (Plaza 46) in the Qurtoba district of Riyadh, located on plots No. (55-56-57-58-68-69-70-71) of scheme No. 2703.

The land area is 6400 square meters and the transaction value is SAR73,100,000.

The company indicated on Tadawul on Thursday that the rental area is 5200 square meter and the annual income is SAR6 million.

Part of the deal was financed with a value of (36,000,000) thirty-six million riyals from the facilities granted to the company by Arab National Bank . and an amount of (26,565,000) twenty-six million five hundred and sixty-five riyals from the facilities granted by Riyad Bank. The rest of the amount was financed from the cash flows available in the company.

 The impact of this acquisition will be positive and will lead to an increase in revenues starting from the first quarter of 2022.

It is expected 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, the company concluded.