Alandalus Property Co. has entered into an agreement worth SAR 43.9 million with Asala Holding Co. to sell its entire 33.4% stake, or 167 shares, in Hamat Real Estate Co., it said in a bourse statement.
Under the agreement, all of the shares held by Alandalus in Hamat, including its rights and obligations as of Sept. 30, 2019, were sold to Asala, which holds the remaining stake in Hamat.
The deal value will be paid in five installments, as follows:
The first installment worth SAR 6.59 million will be payable upon signing the contract. The second installment worth SAR 6.5 million will be payable on Apr. 1, 2020. The third installment will be paid at SAR 8.79 million on July 1, 2020. The fourth installment will be payable at SAR 8.79 million on Oct. 1, 2020, while the fifth installment worth SAR 13.18 million will be payable on Jan. 1, 2021.
The deal proceeds will be used to finance the company's existing and future projects, the statement said.
Alandalus aims to directly manage and operate the malls and commercial centers owned by it and its subsidiaries and affiliates. The financial impact of this transaction will be reflected on the company's Q4 2019 financial statements.
The transfer and assignment of Alandalus' stake will be completed in 30 days from the date of signing the agreement.
In addition, all management, operation and leasing contracts previously concluded with Hamat with respect to the malls owned by the company and its affiliates will be terminated on Dec. 31, 2019, subject to the approval of those companies.
This shall not restrict the ability of assigning leasing services to Hamat on a purely commercial basis, and under a new written agreements starting from Jan. 1, 2020.
The book value of Hamat, which operates in the management, operation and leasing of commercial centers and malls, stood at SAR 43.6 million as of Sept. 30, 2019.
Asala is a related party to Alandalus. Abdulsalam Al-Aqeel serves as chairman of Alandalus and Asala. Salah Al-Habib, deputy chairman of Alandalus is a board member of Asala.
No preferential terms were granted in this deal, which will be submitted to the upcoming general assembly meeting for approval, the statement added.
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