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

Logo of BAAN Holding Group Co.

BAAN Holding Group Co. completed the acquisition of three real estate assets from Al Hokair Holding Group Co. and Al Oula Real Estate Development Co.

In a statement to Tadawul, the company explained that the acquisition was carried out through the transfer of asset ownership to the company and the deposit of the new shares in favor of Al Hokair and the specified affiliates of Al Oula, pursuant to the sale and purchase agreement executed with Al Oula and Ajdan Real Estate Development Co. (acting as guarantor for Al Oula).

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.

- 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 affiliates of Al Oula pursuant to the provisions of the SPA with Al Oula and Ajdan, 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 these transactions, the company’s share capital will be increased from SAR 315 million to SAR 619.97 million, representing a 96.8% capital top-up, in addition to a share premium of SAR 525.15 million.

According to the statement, a related party was involved: 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.

BAAN said the relevant financial impact is expected to be reflected positively 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 through a capital increase of SAR 65.58 million, with the issuance of 65.58 million ordinary shares.