Cenomi Centers completes sale of land in Riyadh for 644.5 mln

Arabian Centres Co. (“Cenomi Centers” or “the company”) announced on Sunday that it has completed the second transaction as part of its non-core asset land sale program.
The 115,094.89 sqm plot, located in Al-Raed District of Riyadh on King Khalid Road cross King Abdullah Road (adjacent to the company’s new flagship project, Jawharat Al-Riyadh), sold for around SR700 million and is the second to be sold as part of the company’s program to sell an identified portfolio of non-core assets worth around SR2 billion.
The sale comes quickly on the back of the inaugural deal within the program, a 17,733 sqm site, located in Olaya district in Riyadh which sold for SR230.5 million.
The transaction details is sale of a 115,094.89 sqm empty land in Al-Raed district of Riyadh is being for SR5,600 per sqm, with a total price of SR644.5 million (excluding the Real Estate Transaction Tax and the Brokerage Fees).
It explained that a final price of SR5,600 per square meter had been agreed upon, bringing the value of the deal to SR644.5 million (not including real estate disposal tax or quest fees).
This sale came on the background of the first deal of the program, during which the company sold a land of 17,733 square meters in the Olaya neighborhood in Riyadh, for about SR230.5 million.
The parties to the deal:
Seller: Cenomi Centers.
Buyer / Sumou Real Estate Company.
The company stated that the book value of the land in its lists amounted to SR381.7 million as of September 30, 2022.
Studies indicated that this land is more suitable for residential and office development projects, and does not support the company’s strategic expansion plans, which are focused on developing modern destinations according to the highest international standards.
According to the company’s statement published on “Tadawul”, the income statement will be positively affected by the value of capital gains resulting from the deal, amounting to SR262.8 million.
It expected this effect to emerge from the deal during the fiscal period ending on December 31, 2022, or the next one ending on March 31, 2023.