SASCO board approves sale of 10 sites for SAR 324 mln; expects SAR 142 mln in capital gains

A SASCO station

Saudi Automotive Services Co.’s board of directors approved on Oct. 30, Falcom Financial Services’ letter in which the latter committed to purchase 10 SASCO-owned sites, the company said in a bourse filing.

Falcom also pledged to establish a real estate fund after obtaining the relevant approvals.

The deal is valued at around SAR 324 million, and SASCO will lease back these sites for 10 years.

SASCO is expected to generate SAR 142 million in capital gains from the deal, while the final financial impact will be determined after the deal is complete, expectedly in 60 days.

Updates will be duly revealed, the statement added. In July, SASCO extended a non-binding memorandum of understanding (MoU) with Falcom for three months to study the options for sale and leaseback some of its owned sites, according to Argaam.

SASCO signed an MoU with Falcom Financial Services, on April 29, to start a due diligence examination for a deal to study the options for sale and leaseback of some of its owned sites, Argaam reported.