Hamad Bin Saedan affiliate sells 74 factories for SAR 190M

Hamad Bin Saedan's affiliate sells a 74-factory portfolio, with net proceeds of SAR 138.5 million.

Hamad Mohammed Bin Saedan Real Estate Co. stated that its 50%-owned subsidiary Moatan Al-Tasheed Co. sold industrial real estate assets for SAR 190 million, excluding taxes and commissions.

The assets comprise 74 standard factories in Blocks 5 and 13 of the Industrial Gateway City project in Riyadh.

In a statement to Tadawul, the company said the assets have a total leasable area of approximately 59,180 square meters and a total land area of 69,930 square meters, generating annual rental income of about SAR 16.98 million.

The company said Block 5 is wholly owned by Moatan Al-Tasheed, while Block 13 is held under a land lease agreement. The lease and the buildings owned by Moatan Al-Tasheed will be transferred to the buyer.

The buyer is the GFH Saudi Logistics Fund, which is currently under establishment. The transaction is subject to the repayment of SAR 30.9 million in financing provided by the Saudi Industrial Development Fund (SIDF), representing the outstanding balance secured against Block 5, to ensure the property is transferred free of mortgages and other financial obligations.

The transaction also includes an agreement to transfer Block 13 to the buyer under an agreed mechanism, including assigning SAR 20.6 million of the transaction value to the landowner, excluding the real estate transaction tax.

The company said the book value of the assets stood at SAR 125.82 million.

The assets recorded the following profit/(loss) over the past three years:

The transaction was approved by Moatan Al-Tasheed's board of managers. The company expects the sale to help monetize the subsidiary's assets and repay the SIDF financing.

After deducting the obligations stipulated in the transaction conditions, the net transaction value will amount to SAR 138.5 million. Based on Hamad Bin Saedan's 50% ownership in Moatan Al- Tasheed, its share of the net sale proceeds will be SAR 69.25 million after deducting the liabilities from the total transaction value.

Since the GFH Saudi Logistics Fund is still under establishment and completing the required regulatory procedures, the agreements were signed on its behalf by its technical adviser, GFH Partners Ltd. All rights, obligations, and agreements will automatically transfer to the fund once it is formally established and meets all regulatory requirements.

Although the related agreements are dated June 23, the company signed them on June 28, which is considered the effective signing date. Accordingly, the transaction was disclosed on the date of actual execution.

The sale proceeds will be received by Moatan Al-Tasheed, the statement said, adding that no related parties are involved in the transaction.