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HomeJarir Marketing Co. Announces Sale Residential, commercial and office building owned by the company, located in Al Rakah Al Janoubia district in Al Khobar Governorate in the value of 178,000,000 SAR
ELEMENT LISTEXPLANATION
IntroductionJarir Marketing Company announces the sale of the building owned by it, located in Al Rakah Al Janoubia district in Al Khobar Governorate. It consists of eight floors, and includes residential, commercial and office areas, in addition to Jarir Bookstore showroom.
Transaction DetailsA sale contract that includes the leaseback of the exhibition dedicated to Jarir Bookstore showroom.
Transaction Value178,000,000 SAR
Transaction Terms1. Sale price: (178,000,000) one hundred and seventy-eight million Riyals, excluding real estate tax.

2. Jarir Marketing Company (the seller) is to lease back the showroom designated as Jarir Bookstore, of an area ​​(4,101) square meters, for a period of twenty-five years, including non cancellable seven years, For an annual rent of (3,444,840) riyals, with an increase of (5%) every five years.
Parties of the Transaction1- Jarir Marketing Company (the seller).

2- One of Riyad Capital Funds (the buyer).

Transaction Funding MethodDo not apply
Transaction Execution Date2022-05-11 Corresponding to 1443-10-10
Description of the Business of the Asset forming the Subject Matter of the TransactionResidential, commercial and office building
Asset Book Value166,425,000 SAR
Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the TransactionAttachement
Transaction reasons1. The sale is consistent with the company's current strategy to disposal of large real estate and focus on the company's main activity.

2. The sale achieves a better return for the company than maintaining its ownership of the real estate, as it will result in an improvement in the in the retern on the company's assets.
Expected Impact of the Transaction on the Company and Its Operations1- The cessation of rental income from the property.

2- Cessation of the depreciation of the property .

3- Payment of rent for Jarir Bookstore showroom .

4- Using the proceeds of sale in the company's activities, which is expected to improve return on the company's assets.

5- Recognition of capital gain of around SAR 10 million (adjusted for the unrecognized postion related to the right of use of the showroom being leased back).
Details of Using The Proceeds of the Asset SaleThe proceeds from the sale will be used in Financing the operating activities of the company.
Related PartiesThere are no related parties in the sale.
Attached Documents