Masar signs SAR 183.7M land sale agreement in Masar Destination

Logo of Umm Al Qura for Development and Construction Co. (Masar)

Umm Al Qura for Development and Construction Co. (Masar) signed a land sale agreement with Makkiyoon Urban Developers Co. for a plot within Masar Destination in Makkah.

The agreement is valued at SAR 183.74 million, excluding taxes and fees payable by the purchaser.

The company said in a statement to Tadawul that the 2,750-square-meter plot is in Zone 2 of Masar Destination and overlooks the pedestrian promenade (boulevard). The transaction forms part of Masar’s strategy to develop the destination, with the buyer set to develop a hospitality tower on the site.

The carrying value of the land stands at SAR 82.68 million, the company said, expecting the transaction to have a positive impact on liquidity and financial results.

It added that the sale proceeds will be used to fund working capital and ongoing projects. There are no related parties to the transaction.

According to Argaam calculations, the company has registered a capital gain of about SAR101.06 million from the transaction.

According to data available to Argaam, Masar has sold and entered into land reservation agreements for several plots in Masar Destination in Makkah since its listing on Tadawul’s Main Market (TASI).

Masar’s land sale transactions in Masar Destination

* Excluding taxes and fees payable by the purchaser.
** Reservation agreement.
*** The agreement expired without completion of the sale.