Atlas Elevators subsidiary inks SAR 12.5M deal for land usufruct, building purchase

Atlas National Elevators Factory Co., a 99%-owned subsidiary of Atlas Elevators General Trading and Contracting Co., signed a SAR 12.5 million agreement to acquire usufruct rights to an industrial land plot and purchase existing buildings from Saudi Kuwaiti Furniture Manufacturing Co., the company said in a statement to Tadawul.

 

 

The deal includes the transfer of usufruct rights to plot No. M16:1+2, spanning 11,250 square metres in Riyadh’s Second Industrial City, along with ownership of all buildings and related assets, including equipment, air conditioning systems and electrical installations.

 

The property was valued at SAR 13.04 million by Oulat Real Estate Appraisal Office and SAR 13.92 million by Asala Real Estate Appraisal Co., the company said.

 

Atlas said the acquisition aligns with its strategy to boost production capacity and meet rising demand for its products. The company expects the move to enhance its competitive position in the Saudi market and generate returns once the factory becomes operational by end-2025.

 

The contract, valid until June 25, was signed after an evaluation by an appraiser accredited by the Saudi Authority for Accredited Valuers (TAQEEM). Under the terms, Atlas National will issue a certified cheque for SAR 12.2 million to Saudi Kuwaiti Furniture, to be held by an intermediary real estate office and released upon completion of utility rights transfer and ownership procedures.

 

The remaining SAR 300,000 will be paid once the buildings are vacated and handed over. A daily penalty of SAR 3,000 will apply for any delays in delivering the site in vacant condition starting June 25.

 

Saudi Kuwaiti Furniture is required to apply to the Saudi Authority for Industrial Cities and Technology Zones (MODON) for contract transfer approval within 15 days of signing and provide necessary documentation for the process. It must also settle all government dues, including utility bills, before handover.

 

Atlas National will coordinate with authorities to finalize the transfer and assume ownership. It will bear no liability for any prior claims, debts or legal issues related to the property, which remain the responsibility of the seller.

 

The company expects the deal to have a positive financial impact once operations commence. No related parties are involved in the transaction.