Tihama sells Jeddah property for SAR 33 mln

Tihama Advertising on Tuesday said it has sold a Jeddah-based property to Middle East Financial Investment Co. for SAR 33 million.

The company made an SAR 18 million capital gain from the transaction, which will reflect on its financial statements for fiscal year 2015, it added in a statement to the Saudi bourse.

Proceeds will go towards the repayment of a SAR 13.77 million Murabaha credit from Kirnaf Installment & Investment Co., while the remaining SAR 19.23 million will be used to finance the company’s ongoing operations.

In a separate statement, Tihama said it made an early repayment of SAR 10.6 million to Kirnaf Co., which was due only by Nov. 30, 2016.

The company also has repaid an amount of SAR 3.2 million due to the same lender.

Tihama said the early repayment of credit is a step towards restructuring its loans according to its future plans and reducing financial burden, in addition to realizing a gain of SAR 117,000 from the early repayment.