BAAN finalizes acquisition of 3 real estate assets worth SAR 830M

Logo of BAAN Holding Group Co.

BAAN Holding Group Co. said it completed the transaction to acquire three real estate assets from Al Hokair Holding Group Co. and real estate assets from Al Oula Real Estate Development Co.

In a statement to Tadawul, the company explained that the acquisition was carried out through the transfer of ownership of the real estate assets to the company and the deposit of the new shares in favor of Al Hokair and the companies designated by Al Oula pursuant to the provisions of the real estate sale and purchase agreement entered into with Al Oula Real Estate Development Co. and Ajdan Real Estate Development Co., in its capacity as guarantor for Al Oula Real Estate.

The transaction consists of the following:

- The company’s acquisition of real estate assets from Al Hokair Holding Group Co., consisting of three hotels together with the lands and real estate assets on which they are located, namely: DoubleTree by Hilton Hotel in Riyadh, located in Al Muruj District; Radisson Blu Corniche Hotel in Jeddah, located in South Obhur District; and Holiday Inn Jeddah Gateway Hotel in Jeddah, located in Al Nuzhah District, with a total value of SAR 651.62 million, and the allocation of 239.39 million ordinary shares to Al Hokair Holding Group Co.

- The company’s acquisition of real estate assets from Al Oula, consisting of 86 residential units representing all residential units located in the “Mid Rise” area of the Ajdan Waterfront Project tower in Al Khobar, with a total value of SAR 178.5 million, and the issuance of 65.58 million ordinary shares to Al Oula, to be allocated to three companies designated by Al Oula pursuant to the provisions of the real estate SPA entered into with Al Oula and Ajdan Real Estate Development Co., in its capacity as guarantor for Al Oula Real Estate Development Co., dated Dec. 29, 2024, namely:

a. Awj Al Mada Real Estate Development and Investment Co., with 21.86 million ordinary shares;

b. Awj Al Majal Co., with 21.86 million ordinary shares; and

c. Awj Al Shati Co., with 21.86 million ordinary shares.

Upon completion of the two transactions, the company’s share capital will be increased from SAR 315 million by an additional amount of SAR 304.97 million, resulting in a new share capital of SAR 619.97 million, representing an increase of 96.8149% of the company’s current share capital, in addition to a share premium of SAR 525.15 million.

According to the statement, the Transaction involved a related party, as Abdulmohsen Abdulaziz Al Hokair Holding Group Co. was deemed a related party given that the company’s board chairman is also a board member in Al Hokair Holding Group Co., and the Vice Chairman of the company’s board of directors serves as the CEO of Al Hokair Holding Group.

The financial impact on the company is expected to be positive during the second quarter of 2026.

According to Argaam’s data, BAAN’s shareholders approved last April the acquisition of real estate assets from Al Oula Real Estate Development Co. through a capital increase of SAR 65.58 million, with the issuance of 65.58 million ordinary shares.

The deal will be executed through a capital increase of SAR 65.58 million, with the issuance of 65.58 million ordinary shares.