SACO signs SAR 140.4M contract to sell Riyadh warehouse

Logo of Saudi Company for Hardware (SACO)

Saudi Company for Hardware (SACO) signed today, July 15, a contract to sell its warehouse in Al-Mashael district, Riyadh, for nearly SAR 140.43 million, excluding real estate transaction tax and brokerage commission.

The 42,937 square meter warehouse was sold to 6th Iradat Al Imdad Co., a limited liability company, the firm said in a statement to Tadawul.

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There are no related parties to the deal, the statement added.

Proceeds from the sale will be used to repay existing bank loans and help finance its future expansion plans.

The book value of the property as of June 30, 2025, stood at SAR 93 million, the statement said, adding that the positive financial impact of the sale is expected to be reflected as of Q3 2025.

The deal is part of SACO’s transformational strategy, which includes consolidating its supply and distribution operations through its warehouse facilities in Dammam.

Meanwhile, the Riyadh facility will be converted into an investment property.

SACO said that the move will support its long-term strategic objectives, enhance supply chain efficiency, and improve returns through more effective asset management.