Arabian Centres receives full dues of SAR 350.3 mln from FAS Holding

Arabian Centres Co.’s (ACC) board of directors approved, on Jan. 27, 2021, the receipt of all dues from FAS Holding Co. for Hotels (a related party) at a total of SAR 350.3 million as on Sept. 30, 2020, the company said in a statement to Tadawul.

The dues were received through cash and in-kind settlement (real estates), where ACC will undertake four plots of land and a building strategically located in Jeddah, Dammam, Al-Ahsa and Al-Kharj.

The valuation of the properties was carried by four accredited and independent real estate valuers. The two parties agreed that ACC will undertake the real estate at a 9% discount from the valuation median.

ACC management ensured that the land plots are located strategically (two are adjacent to existing malls), so as to support the company's broad strategy, which aims to expand within the lifestyle shopping centers.

The financial impact of this deal is expected to appear in multiple stages on the company's financial statements during the coming four quarters, starting from the fourth quarter ending on March 31, 2021.

The voting process on this resolution was conducted by the independent board members only, the statement added.