Masar signs land sale deal worth SAR 204.6M

Masar finalized a SAR 204.62 million land sale within the Masar Destination project

Umm Al-Qura for Development and Construction Co. (Masar) signed an agreement with Gazeel Contracting Co., a special purpose vehicle (SPV) of a real estate fund managed by SEDCO Capital, to sell a land plot within the Masar Destination project for SAR 204.62 million. Taxes and fees will be borne by the buyer, the company said in a statement to Tadawul.

The land covers 2,861.79 square meters and has a book value of SAR 103.89 million. Masar said the sale proceeds would be used to finance working capital and ongoing projects.

The deal is part of the company’s strategy to develop Masar Destination by enabling the buyer to build residential units, with the company expecting a positive impact on liquidity and financial results.

According to Argaam data, Masar is expected to generate a capital gain of SAR 100.73 million from the sale.

Since its listing on the Main Market (TASI) last March, Masar has sold 22 land plots within the Masar Destination project in Makkah, with a total value of SAR 3.83 billion.

*Excluding taxes and fees borne by the buyer.

**A reservation agreement

The company’s prospectus indicates plans to sell 111 of its 205 land plots, lease 28 properties, develop 14 properties directly, and develop 52 properties in partnership with strategic partners.