Masar signs reservation agreement to sell land for SAR 220.6M

Masar expects stronger liquidity from land sale at Masar Destination in Makkah

Umm Al Qura for Development and Construction Co. (Masar) signed a reservation agreement to sell a 835.31 square meters (sqm) land plot within the Masar Destination project in Makkah for SAR 220.6 million, according to a statement to Tadawul.

The agreement was signed between Alinma First Development Co. (the SPV for Alinma Makkah Development Fund I, in which Masar owns all units) and Numu Co., which will develop hospitality units on the site.

As per the reservation agreement, the investor will pay a deposit to reserve the plot, with the final sale agreement expected to be concluded within the 12-month reservation period starting from Sept. 30, the statement said.

Masar expects a positive impact on its liquidity from the receipt of the deposit upon signing the reservation agreement, as well as on its financial results upon completing the transaction or the expiry of the reservation agreement.

There are no related parties involved in the deal. Any material developments will be announced in due course.

Since its listing on the Main Market (TASI) last March, Masar sold 18 land plots in the Masar Destination project for SAR 2.94 billion, according to data available with Argaam.

*Excluding tax & fees borne by the buyer

** Two plots of land

***Five plots of land

According to the company’s prospectus, Masar aims to sell 111 plots of land out of its total 205 land plots, lease 28 properties, and plans to develop 14 properties independently and develop 52 properties in partnership with strategic partners.