Riyadh – Mubasher: Emaar The Economic City announced the sale of an undeveloped industrial plot to four parties, of which one is a subsidiary of Saudi Arabia’s sovereign wealth fund the Public Investment Fund (PIF).
The other three parties are Dar Al Himmah Projects Co. Ltd., Zamil Group Real Estate Company, and Abdullah Ibrahim Alkhorayef Sons Company.
The value of the industrial plot is SAR 366.76 million, while the asset book value stands at SAR 16.40 million at a historical cost, according to a bourse disclosure.
Emaar The Economic City noted that the aim of the transaction is to develop all secondary infrastructure and establish an industrial logistics hub in the Special Economic Zones (SEZ). It added that the proceeds of the sale deal will be directed primarily towards the development of infrastructure, in addition to operating working capital and the fulfillment of certain financial obligations.
Furthermore, the payment of the deal will be over two years while the transaction execution date was announced as 22 June 2023.
Emaar The Economic City will start recognising revenue starting from the third quarter (Q3) of 2023, in accordance with the terms and conditions of the contract and applicable financial reporting standards.
In Q1-23, the listed company suffered net losses after Zakat and tax worth SAR 171 million, yet it recorded over an 80% jump in revenue to SAR 157 million.
