Banan subsidiary renews leases in Riyadh, Qassim, Dammam for SAR 9.3M

Logo of Banan Real Estate Co.

Banan Real Estate Co.’s subsidiary, Al-Aziza Real Estate Development and Investment Co., renewed contracts with Arabian Company For Fans and Alhaqbani Trading Group, for SAR 9.27 million (including VAT).

The agreement with Arabian Fans covers renewal of office and warehouses lease in Riyadh and Qassim for SAR 3.74 million (including VAT), Banan said in a statement to Tadawul.

In a separate statement, Banan announced that the contract with Alhaqbani Trading includes renewing the lease for offices, showrooms, and warehouses in Riyadh and Dammam. The contract is valued at SAR 5.53 million (including VAT).

Both contracts have a duration of two years. The value of the contracts will be paid in two instalments every year. The rent period begins on Jan. 1, 2024, and ends on Dec. 31, 2025. However, for a warehouse in Riyadh the contract duration is one year, starting from Jan. 1, 2024.

It is expected that the contracts will have a positive financial impact on the company’s revenues and results starting from Q1 2024.

The contracts have related parties, including Abdul Mohsen Al-Haqbani (Chairman), Ahmed Al-Haqbani (Vice Chairman) and Faisal Muhammad Abdulaziz Al-Haqbani (board member), the statement said.