MEPCO: Shorouk Advanced files real estate lawsuit to prove ownership of property, through correct procedures at SR30 mln

Middle East Paper Co. announced on Sunday the filing of a real estate lawsuit against it by Al Shorouk Advanced Development Company, to demand proof of ownership of real estate for which a final court decision was issued in favor of MEPCO before.
The company had previously purchased the property in question through valid and announced auction procedures, and judicial decision No. 38260136, granting Middle east paper co the ownership over the mentioned real estate, after MEPCO already paid an amount of SR30 million, which was deposited by certified checks in the account of the Enforcement Court in Jeddah. Accordingly, the judge of the Court marked the real estate deeds to prove its ownership to MEPCO and addressed the notary to marginalize the registry by transferring ownership to the MEPCO. And later it was found that there was an investigation by the Public Prosecution in Jeddah with the former owner of the land, (the auction of selling the Land executed against him) based on a complaint submitted by the manager of Al-Shorouk Advanced Development Company, which claims ownership of the property before the one whom the auction was held against, accordingly, the Public Prosecution issued its decision to stop dealing The real state was entrusted to its previous owner and therefore it was not possible to transfer its ownership to MEPCO at the notary public.
The current plaintiff filed a lawsuit against the company before the General Court in Jeddah to claim ownership over the real state. The department decided its value jurisdiction to consider the case and requested a response to its subject on October 12, 2022 after the plaintiff company submitted an assessment of the aforesaid real state from an accredited valuer at a value of SR217,500,000 with an error rate of + or -10%.
It is not possible at this stage to determine the financial impact of this case, and any Major updates regarding this case will be announced in due course.
Currently there is none, and will announce on any consequences that may arise in the future.
According to the documents available to it on the subject of the aforementioned real state, MEPCO has obtained legal advice to confirm the company’s right to own the land in accordance with Article 54 of the Enforcement Regulation and related laws and regulations.
MEPCO assumes no responsibility as a result of filing a lawsuit against it.
MEPCO also assigned an external lawyer to respond to the lawsuit and defend MEPCO’s interests.
The land was reclassified from property, plant and equipment to advance payments paid against the acquisition of the land until the transfer of control (transfer of ownership of the deeds in the records at the notary public) to the company, as a result, an amount of SR30 million was reclassified to Advance payments paid against the acquisition of land within current assets in the period ending in June 2022 with comparative figures for the year ending on December 31, 2021.