Red Sea to build $4 mln staff housing in Guinea

Red Sea Housing Services Co. signed on Tuesday a contract with Guinea’s Compagnie Des Bauxites De Guinee (CBG) to build a housing complex for 1,100 workers in the country, the company said in a statement to Tadawul.

Construction work on the $4 million (SAR 15.12 million) project began yesterday, the Saudi-based developer said, adding that it expects the related financial impact to reflect on Q3 results.

The project, which is the third between the two companies, will be financed from the company’s internal cash flows and available credit facilities. It is scheduled for completion on October 10, 2016.

On January 1, the company first closed a deal with CBG to build a housing complex for 1,100 of its staff, which was completed earlier this month. A second contract was signed on March 22 to construct another residential complex, with the completion set for August.

The total value of the three contracts exceeds 5 percent of the company’s revenue, the statement added.