Riyadh – Mubasher: Multi Business Group Company has announced a significant update regarding its contractual relationship with Leejam Sports Company, reporting the receipt of a formal notice to terminate a previously agreed-upon construction and design project.
The contract, which was originally signed in December 2024, involved the development of a sports club within the King Abdullah Financial District in Riyadh.
According to the disclosure, the termination notice follows challenges related to obtaining the necessary design approvals required for the project to proceed.
The initial agreement was first announced on the Saudi Exchange on 18 December 2024. Under the terms of that contract, Multi Business Group was tasked with the comprehensive design, construction, and finishing works for a new fitness facility located in the prestigious King Abdullah Financial District (KAFD).
This project was intended to expand the footprint of Leejam Sports, which operates the Fitness Time brand, into one of the Kingdom’s primary financial and commercial hubs.
In its latest regulatory filing, Multi Business confirmed that it received an electronic communication from Leejam Sports notifying them of the decision to rescind the contract.
The client cited the inability to secure the required regulatory or technical approvals for the project’s designs as the primary justification for the termination. This development marks a shift in the project’s timeline and status, which had been a point of interest for investors following the initial contract signing earlier in the month.
In response to the notice, Multi Business stated that it is currently conducting a thorough review of the termination letter from both legal and contractual standpoints. The company emphasized that its receipt and study of the notice do not constitute an admission of the validity of the reasons provided by Leejam Sports.
Multi Business Group has explicitly stated that it reserves all its legal and contractual rights concerning the agreement and the subsequent termination notice.
