Raydan signs SAR 8M sale-leaseback deal for branch in Jeddah

In a statement to Tadawul, the company said the asset’s book value stood at SAR 10.18 million based on the latest reviewed interim financial statements for the period ended Sept. 30, 2025, representing 13.92% of capital.

The value comprises SAR 4.33 million for land and SAR 5.86 million for buildings and improvements.

Raydan said it simultaneously entered into a 10-year long-term lease for the same branch under a sale-and-leaseback transaction, with total annual rent of SAR 700,000.

The company emphasized that the sale-and-leaseback transaction is interdependent.

The asset is used in the company’s full-service restaurant operations. Proceeds from the transaction are expected to be used to repay part of existing financial obligations, supporting liquidity and the company’s financial position.

The branch does not have standalone financial statements, as its results are consolidated within the group’s financials.

Moreover, the company explained that the transaction is intended to improve liquidity, repay part of its financial obligations, and release the existing mortgage held by Yanal Finance Co.

The transaction will result in a lease liability and a right-of-use asset, to be accounted for in accordance with IFRS 16. Raydan is committed to disclosing any future material developments and confirming that no related parties are involved.

In 2024, Raydan reached an agreement to reschedule loan instalments worth SAR 5.15 million, resulting in additional financing charges of SAR 784,500, which were paid upfront on the date of rescheduling and are being amortized over the revised loan tenor, now set to mature on Oct. 25, 2026.