Makkah land plot sold for $221m

Sunday, December 13, 2020

Jabal Omar Development Co. (JODC) inked a contract to sell a land plot within its flagship project in Makkah to an investment firm for SR830 million ($221.33 million), the real estate developer said in a bourse statement.

The buyer will afford the real estate transfer tax, according to the statement.

The deal stipulates that the land ownership deed shall be transferred at a notary public office, and a road shall be paved for equipment transfer during the construction works.

The land plot’s book value stood at SR115.8 million, and the deal proceeds will be utilized in financing the company’s developments, in addition to the rescheduling of the outstanding loans.

The deal, which came within Jabal Omar’s strategic plans for restructuring, is forecast to reflect positively on the company’s financials.

No related parties are involved in the deal, the statement added.

Jabal Omar issued on July 16, 2020, the uniform ownership deed on the company's project in Makkah at 231,940 square meters (sq m), Argaam reported.