Riyadh Development divests Tanal for Development

Logo of Riyadh Development Co.

Riyadh Development Co. divested Tanal for Development and Real Estate Investment Ltd after completing the sale of all land inventory, according to a Tadawul statement.

The company signed a waiver agreement for its entire 69.38% shareholding in the capital, including rights and obligations, in favor of Sumou Holding Co., its partner in Tanal.

In return, Riyadh Development received its SAR 69,380 share of Tanal’s capital and its SAR 20,814 share of statutory reserves, based on Tanal’s 2024 financial statements.

There is no material financial impact on Riyadh Development’s results.

Riyadh Development established Tanal in 2019 as a special purpose vehicle to invest in the infrastructure development of a plot in Al Rimal district in Riyadh, covering three million square meters.

From this investment, the developer achieved earnings of nearly SAR 819 million, equivalent to a 14% internal rate of return (IRR) and an 18% annual return on investment (ROI).

The company's board member, Abdulrahman Al-Qahtani, is also a board member of Sumou Holding.

In early 2023, the company launched its strategy “We Invest for Growth,” which led to the signing of investment agreements exceeding SAR 9 billion. This will enhance total shareholders' equity and reinforce the company's role as a leading real estate developer and project manager.

In June 2019, Riyadh Development participated with Sumou Holding — the owner of Adeer Real Estate — in establishing Tanal, with a capital of SAR 100,000, according to Argaam data.