Enma Alrawabi purchases buildings in Riyadh at SAR 180 million

Enma Alrawabi Company announced its concluded agreement with Al-Motaqadimah Schools Company to terminate the lease contract for the Hittin land in Riyadh (by mutual consent) that was signed on October 1, 2018, through buying out the buildings erected on the land for a value of SAR 180 million.

The transaction will be financed through a loan for the value of SAR 170 million through a mortgage on the Hittin land. The remaining payment of SAR 10 million will be paid from the company’s own resources.

The purpose for the transaction is to optimise the use of the subject property by increasing the performance efficiency of the company’s real estate portfolio.

The company expects high and best use of the property that will reflect positively by increasing the non-current assets item in the balance sheet for the year ending on 31.12.2024 and the likelihood of increasing the rental revenues of the subject property.

It is to be noted that the signing of the contract purchasing the buildings erected on the land from Al-Motaqadimah Schools Company is considered as a termination of the lease contract signed between Al-Motaqadimah Schools Company and Enma Al Rawabi Company on 01.10.2018, which had a term of twenty-five years and ends on 31.01.2044.

Parties of the Transaction

Enma Al Rawabi Company (Buyer)

Al-Motaqadimah Schools Company (Seller)