Al-Tayyar Travel Group Holding acquired 100% of the shares in Muthamara Real Estate Investment Company, which specializes in real estate development and the construction of hotels and residential units in Makkah, after agreeing to purchase the remainingremaining assets for a total of 850 million riyals, in line with its strategic plan to expand its Hajj and Umrah services in Makkah through successful partnerships in the development of the Hajj and Umrah sector.
Al-Tayyar Travel Group Holding Company signed a contract to purchase the remaining stake in Muthamara Real Estate Investment Company, amounting to 25% of the company’s capital, for 208.325 million riyals. The contract was signed on July 21, 2014, between Al-Tayyar Holidays Travel and Tourism Company—wholly owned by the group—and Mathamara Holding Company.
Dr. Abdullah bin Hamad Al-Mashal, Chairman of the Board of Directors of Mathamara Holding Group, said: “Praise be to God, Muthamara Holding Group has completed the sale of its entire stake in Muthamara Real Estate Investment Company to Al-Tayyar Travel Holding Group, thereby finalizing the sale of all shares in Muthamara Real Estate Investment Company. During the month of Ramadan in 1433 AH (July 2012 CE), it sold 36% of the company’s shares for 300 million riyals, representing the company’s capital and assets. In the first quarter of 2013 (April), Al-Tayyar Travel Group purchased 39% of the company’s assets and capital for 341 million riyals; bringing the total acquisition to 75% valued at 641 million riyals, and the value of the third and final acquisition was 208.3 million riyals, representing 25% of the value of the remaining assets.
Dr. Al-Mashal added: ”We at Muthamara Holding Group are well aware that our success in creating residential and investment products, as well as major complexes in the accommodation and hospitality sector, necessitates our expansion into this type of investment to keep pace with the growing demand for such products. and Muthamara Holding Group’s success in investing in this field has been reflected in the volume of demand for these projects and the investment in them, This is what prompted us on the Group’s Board of Directors to sell all of the company’s shares to Al-Tayyar Group, in preparation for meeting the demands of the increasing demand for these projects, especially since the Group has expanded the scale of its projects and diversified its investments in Makkah, noting that the Group is currently developing major and significant projects, most notably the “Ma’ad” project, which comprises 21 towers, and the “Al-Ajaba” project, which comprises 8 towers in Makkah.
For his part, Dr. Nasser bin Aqeel Al-Tayyar, Vice Chairman of the Board of Directors, and Managing Director of Al-Tayyar Travel Group Holding, described the Group’s acquisition of Muthamara Real Estate Investment Company as part of its strategic plan to expand in the field of Hajj and Umrah services in Makkah through successful partnerships in the development of the Hajj and Umrah sector. Dr. Al-Tayyar explained that the quality, excellence, and distinction of Muthamara Real Estate’s assets motivated us to purchase the remaining shares and assets of the company, which include five 4-star hotels located in the central area of the Grand Mosque and two office towers.
The agreement concluded between Muthamara Holding Group and Al-Tayyar Group was signed by Dr. Abdullah bin Hamad Al-Mashal, Chairman of the Board of Directors of Muthamara Holding Group, and Dr. Nasser bin Aqeel Al-Tayyar, Vice Chairman and Managing Director of Al-Tayyar Travel Group Holding, the sale by Mathamara of its entire remaining stake—representing 25%—in Mathamara Real Estate Investment Company to Al-Tayyar Group, bringing the total number of Mathamara shares owned by Al-Tayyar Group to 100%, with a value of approximately 850 million riyals.
Dr. Abdullah Al-Mashal added: “This step signifies that we at Muthamara Holding Group are moving toward broader and larger scales in developing high-quality projects in the hospitality sector, leveraging our extensive experience at Muthamara, whose assets were sold to Al-Tayyar Group.”
Dr. Abdullah Al-Mashal revealed one of the major projects currently under development in Mecca: the “Ma’ad” project, which comprises twenty-one towers designed by the American firm SOM—ranked among the world’s leading design firms and the designer of the Burj Khalifa. This massive project is being built on land in Nabasta, approximately 600 meters from the new expansion of the Sacred Mosque in Mecca. It covers a construction area of one million square meters and is situated along roads and streets that serve all the towers, as well as shaded and air-conditioned pedestrian walkways and paths. The project includes a massive shopping mall featuring numerous international and local retail brands, as well as prayer rooms and large halls for meetings and celebrations.
All the suites and apartments in the project are 4-star, and discussions are currently underway with a number of companies specializing in operating this type of hotel. Dr. Al-Mashal noted that the first phase of the project will be completed during the Hajj of 1437 AH, God willing.
He emphasized that all the projects we are working on aim to develop hospitality and housing projects in Makkah for pilgrims, Umrah performers, and visitors at affordable prices, and with high-quality operations, in collaboration with leading international firms in this field. He affirmed that all projects led by Al-Mashal Investment Group follow this strategic direction, which focuses on high-quality projects that provide affordable residential and hotel units.
Dr. Al-Mashal welcomed investment and partnerships with major investment groups to leverage our extensive investment expertise in Makkah.
