Masar wraps up land sale for SAR 89.5M, books SAR 49.2M gains

Masar continues monetizing land assets within its flagship Makkah development with residential tower coming up on the new land plot sold

Umm Al Qura for Development and Construction Co. (Masar) signed, on Feb. 12, an agreement to sell a land plot, spanning 2,915.80 square meters within the Masar Destination project in Makkah for SAR 89.46 million (excluding taxes and fees, which will be paid by the buyer), according to a statement to Tadawul.

The first party to the deal is Al-Inma Second Development Co., a special purpose vehicle (SPV) for Masar-owned Alinma Makkah Development Fund II, while the second party is Arabian Dyar Real Estate Development Co.

The book value of the land plot is SAR 40.30 million, resulting in a capital gain of SAR 49.16 million.

The agreement supports the implementation of Masar Destination’s development strategy, with the buyer developing a residential tower.

The deal is expected to reflect positively on Masar’s liquidity and financial results, the statement said.

The proceeds from the asset sale will be used to finance working capital and ongoing projects, the company said, confirming that no related parties are involved in the deal.

According to data available with Argaam, Masar sold 29 land plots within the Masar Destination project in Makkah since its listing on the Main Market in March, with total proceeds reaching SAR 4.67 billion.

**A reservation agreement

***The contract was terminated in January due to the buyer’s breach of a material contractual obligation.

According to the company’s prospectus, it aims to sell 111 out of its 205 land plots, target leasing 28 properties, and develop 14 properties directly, in addition to developing 52 properties in partnership with strategic partners.