Taiba Holding and subsidiary make profit of land expropriation

Taiba Holding and its 89.9 percent owned subsidiary, Al-Aqeeq Real Estate Development Co. received compensations for the expropriation of their property under the expansion project of Prophet Mohamed’s Holy Mosque, as follows:

1. Taiba Holding received a SAR 4.66 million compensation for a property located at Al-Ijaba district, outside of the central zone (northeastern Prophet Mohamed’s Mosque). The property’s book value is SAR 1.29 million and the differential is recognized as profit.

2. Al-Aqeeq Real Estate Development Co. received a SAR 942 million compensation for its land plots 5026 & 5027, located at the central zone (at Al-Madinah), on which Al-Reyadah Hotel is built. The property’s book value is SAR 210.76 million, the differential is recognized as profit.

Taiba Holding said in a filing that its subsidiary Al-Aqeeq Real Estate Development Co. received yesterday another SAR 15.47 million compensation for its property located at Al-Ijaba district, located outside of the central zone (northeastern Prophet Mohamed’s Mosque). The property’s book value is SAR 2.67 million, the differential is recognized as profit.

The financial impact on the two firms’ business will be reflected in the third quarter ending on September 30, 2014.