Al Akaria establishes wholly owned company, expects financial impact to appear during Q4

Saudi Real Estate Company announced on Wednesday that it has incorporated a newly established limited liability company, Hodoud Real Estate Investment, a fully owned subsidiary with a Commercial Registration 101836057 (Headquarter in Riyadh), commencing its business activities on 25/10/2022 with fully paid-up capital of SR10,000 divided into 1,000 equal shares (10 SR/Share), to transfer the ownership of lands invested earlier in the Alinma Alakaria Real Estate Fund.
Alakaria has subscribed with all the company’s shares with the aim of transferring the ownership of the sukuk from the Real Estate Development Fund to Alakaria Investment, which is wholly owned by the Real Estate Company and the company’s head office is located in Riyadh.
The reasons for exceeding the announced end date is assessment of options available for the Company in regard to the transfer of lands’ ownership invested earlier in the Alinma Alakaria Real Estate Fund including any tax implications. Consequently, the Company shall benefit from the recently announced Tax Exemption stipulated in Clause (A/17) of the 3rd Article of the Real Estate Transaction Tax Policy, upon which the Company shall be exempted from the Real Estate Transaction Tax upon completing the transfer.
Fee related to the establishment of the newly incorporated entity, Hodoud Real Estate Investment
This comes with reference to the Company’s latest announcement, dated 01/02/2022, in connection with the assessment of options available for the Company to transfer the lands’ title deed ownership invested earlier (by way of in-kind contribution) in the Alinma Alakaria Real Estate Fund along with the tax implication.