Jabal Omar Sell Land Plot

Jabal Omar Development Company announced on Thursday the selling of a land plot with a total area of 2,600 sqm, located within its project, in Makkah, for SR517,463,680.

The buyer shall bear the real estate transaction tax and brokerage fees.

The transaction was med to execute the company’s plans to restructure its financial obligations and complete the construction work of the outstanding phases, the company said.

The company said on Tadawul website that the asset book value amounts to SR110, 835, 057 including the development value.

The deal is expected to have a positive impact on the company’s financial results after the completion of the process of land deed’s transfer.

The sale proceeds will be used to complete the construction work of the outstanding phases of project and to repay part of the syndicated loan.

In response, Mohammed Al-Amoudi, CEO of Jabal Omar Development Company said: “The success of the auction reflects the confidence of investors and developers in the feasibility of investing in the Jabal Omar project as one of the major best-developed real estate projects next to the Holy Mosque.”

“This strategic deal will enable us to speed up work to complete the existing project phases and come into operation.” he added.

The company is working on a number of initiatives aimed at improving the capital structure by restricting and reducing existing financial obligations, in addition to accelerating the completion of the remaining construction works in the phases under development, which is expected to contribute to improving the company’s cash flow