Logo of Riyadh Development Co. (ARDCO)
Riyadh Development Co. (ARDCO) and Arriyadh Holding Co. signed, on May 21, a memorandum of understanding (MoU) to establish a joint venture (JV), specialized in real estate development and management, to develop Dirah District Markets, central Riyadh.
The deal is also aimed at enhancing cooperation between the parties by launching qualitative investment projects, to improve the quality of services and achieve the aspirations of shareholders, according to a Tadawul statement.
ARDCO pointed out that the MoU term extends for one year.
Assets owned by the two companies in central Riyadh fall under the JV’s umbrella, namely Attameer Center, Almaigliah Souq and Dirah Markets.
The cooperation will integrate the three centers’ activities and raise occupancy rates. This is in addition to enhancing operational efficiency.
Under the MoU, the two parties cooperate in exchanging information, providing necessary training and qualifying national cadres, and other common benefits that will enhance the deal value to be added to the Saudi capital’s development efforts.
This will further enhance the ARDCO’s role as one of the capital’s development enablers.
There are related parties to the agreement: ARDCO’s Chairman Prince Faisal bin Abdulaziz Bin Ayyaf and ARDCO’s board member Abdullah Al-Bahouth, representing the General Organization for Social Insurance (GOSI), which owns a stake in Arriyadh Holding. This is in addition to ARDCO’s board member Fahad Al-Qasim, who is also member of Arriyadh Holding’s Executive Committee.
The company indicated that the deal’s financial impact cannot be determined at this stage, noting that this potential deal, if passed, will be subject to regulatory approvals of the competent authorities, including the General Authority for Competition and both companies’ shareholders.
Any material developments will be announced in due course, the statement added.
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