MEPCO finalizes deed transfer for property ownership

Legal fees incurred will be recognized in MEPCO’s Q2 2026 financial statements

Middle East Paper Co. (MEPCO) announced the completion of the title deed transfer and registration of a property in the company's name following a final court ruling in the real estate lawsuit filed against it by Al Shorouq Al Motatawera Development Co.

In a statement to Tadawul, MEPCO said the property is a vacant 966,500-square-meter plot in the Hadda area on the old Jeddah-Makkah road.

The company added that legal fees incurred in completing the title transfer will be recognized in its Q2 2026 financial statements.

It noted that the land had previously been reclassified from property, plant and equipment to advances paid for land acquisition, until control was transferred (i.e., transfer of title deeds in notary records) to the company.

Accordingly, SAR 32.3 million was reclassified as advances paid for land acquisition under current assets for the period ended June 2022, including comparative figures for the year ended Dec. 31, 2021.

MEPCO added that the external auditor drew attention in the annual financial statements for the year ended Dec. 31, 2025, and the Q1 2026 financial statements to Note 10(b) of the condensed consolidated interim financial statements, which details the advance payment made by the group in prior years to purchase the land through a public auction.

As of March 31, 2026, while there was no dispute regarding the legal ownership of the land, the administrative and execution procedures required to complete the transfer of title to the group were still ongoing.

The company said that, following completion of the transfer, the land will be reclassified as an asset in its financial statements. The financial impact cannot currently be determined and will be reflected in the Q2 2026 financial statements.

According to Argaam data, MEPCO announced in September 2023 that the Court of Appeal issued a final ruling in its favor, upholding the preliminary judgment on the real estate lawsuit filed by Al Shorouk Al Motatawira, demanding proof of ownership.