Banan unit signs SAR 244M deal with Armah to set up 2 sports clubs

Logo of Banan Real Estate Co.

Banan Real Estate Co.’s subsidiary Qimam Noshoz Real Estate Development Co. and Armah Sports Co. inked a contract to develop and lease two sports clubs in Riyadh’s Al-Rahmaniyah neighborhood, at a total value of SAR 244.11 million (excluding VAT).

The sports club will be fully equipped and ready for operation (excluding movable furniture and sports equipment), the two companies said in separate statements to Tadawul.

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The contract value represents a minimum threshold, with a potential increase of up to 24% depending on the clubs’ revenue performance.

Armah Sports noted that the two fitness clubs (one for men and the other for women) will operate under its Optimo brand.

This project is part of a broader collaboration between Armah Sports and Banan aimed at developing fully integrated sports clubs.

Armah Sports will lease the fitness clubs under a long-term contract for 20 years, starting from the handover date.

During the project’s development phase, Banan expects direct revenue from development activities, while also enhancing its investments and increasing returns through its subsidiary upon project completion.

Armah Sports expects the financial impact of the agreement to begin once the project is complete and operational.

There are no related parties to the deal, both companies noted, adding that any material developments regarding the contract and project will be disclosed in due course.