Jabal Omar Development Company announced that it sold yesterday, Wednesday, a 2600 square meter plot of land located within its project in the holy city of Makkah to “Real Estate for Development and Development”, worth SAR 517.5 million, in addition to the buyer's assumption of real estate transaction tax and fees for the quest.

The company said in a statement on “Tadawul”, that the book value of the asset is 110.84 million riyals including the value of development.

The transaction came to implement its plans to restructure financial obligations and complete the construction of existing phases, expecting that the transaction will have a positive impact on the financial results after completing the process of emptying the land in favor of the buyer.

It indicated that the sale proceeds will be used to complete the construction work in the existing phases of the project in addition to repaying part of the syndicated loan, indicating that there are no related parties in the transaction.

The company noted that it is working on a number of initiatives aimed at optimizing the capital structure by restructuring and reducing existing financial obligations, in addition to accelerating the pace of completion of the remaining construction work in the under-construction phases of the Jabal Omar project, which the company expects to contribute to improving its cash flows.

The company explained that it offered the land plot through an auction in Jeddah, which witnessed strong competition from investors, due to which the company was able to sell the land at the mentioned value.


Khaled Al Amoudi, CEO of Jabal Omar, said that the success of the auction reflects the confidence of investors and developers in the feasibility of investing in Jabal Omar project as one of the best major real estate projects developed next to the Holy Mosque, adding that this strategic transaction will enable the company to accelerate work on the implementation of existing project phases and their entry into operation.