Riyadh – Mubasher: Ash Sharqiyah Development Company signed an agreement with Omar bin Saleh bin Abdul Aziz Babeker to acquire the ownership of two income-generating real estate assets in Riyadh and fully owned by Babeker.
The transaction aims at increasing Ash Sharqiyah’s capital and issuing shares in favour of the seller with the value of the assets to be acquired, Ash Sharqiyah said in a recent statement to the Saudi Stock Exchange (Tadawul).
The total value of acquired assets amounted to SAR 135 million.
The first real estate asset, located in Riyadh, is a residential complex of consisting of 90 housing units, including 42 villas and 48 apartments, while the second one is a residential complex consists of six residential buildings and comprises 86 apartments.
Upon the completion of the acquisition, Ash Sharqiyah’s capital will stand at SAR 120 million instead of SAR 75 million.
However, the current shareholders’ equity will be reduced from 100% to 62.5%, the statement said.
It is worth noting that it was agreed to issue the new shares at SAR 30 apiece, including a nominal value of SAR 10 for each.
The real estates of the transaction are fully leased to a third party for five years.
