Sport Clubs signs SAR 34.8M lease for new Jeddah club

The new Body Masters fitness club will be built on a 3,500-sqm plot in Jeddah’s Al Nuzhah district

Sport Clubs Co. signed a land lease agreement with Al Arab Al Haditha Real Estate Co. for a 3,500-sqm plot in Al Nuzhah district, Jeddah, to develop, equip and operate a new fitness club under the Body Masters brand. The 20-year lease is valued at SAR 34.8 million, excluding VAT, according to a statement to Tadawul.

The lease term will run from Jan. 1, 2028, through Dec. 31, 2047, preceded by a rent-free period of around 15 months from the agreement signing date through Dec. 31, 2027, allocated for design, construction and building works.

The relevant financial impact will begin after construction and fit-out works are completed, the necessary licenses are obtained and the fitness club commences operations.

The agreement is part of the company’s expansion strategy to open new locations in key areas, helping expand its customer base and support future revenue growth. Following the agreement, the number of projects under development stands at 17, including nine under construction and eight awaiting the necessary licenses to begin construction.

There are no related parties to the agreement, and any material developments regarding the project will be announced in due course.