Riyadh – Mubasher: Umm Al Qura for Development and Construction Company has finalized agreements for the sale of three strategic land plots within the Masar Destination in Makkah.
The transaction, valued at a combined total of SAR 239.85 million, involves the transfer of land parcels located in the project's third zone to Osos Abraj Bawabat Al Rahmania.
This divestment is part of a broader strategic initiative to accelerate the development of residential infrastructure within the Masar mega-project.
The transaction involves three distinct plots of land covering a total area of 6,904.62 square meters.
According to the company’s disclosure, the individual sale prices for the plots were set at SAR 75.13 million for the first plot, SAR 77.27 million for the second, and SAR 87.44 million for the third. These figures represent the base sale prices and do not include applicable taxes or fees, which are to be borne by the purchasing party.
The structure of the deal involves multiple entities under the Umm Al Qura umbrella.
The first and second plots were sold directly by Umm Al Qura for Development and Construction Company. The third plot was sold by Alinma Development First Limited, a special purpose vehicle (SPV) for the Alinma Makkah Real Estate Development Fund I, in which Umm Al Qura holds 100% of the units.
The purchasing entity, Osos Abraj Bawabat Al Rahmania, is an SPV for a real estate fund managed by Al Rajhi Capital.
From a financial perspective, the sale represents a significant premium over the book value of the assets.
The total book value for the three plots is recorded at SAR 114.19 million, divided into SAR 36.44 million for the first plot, SAR 38.38 million for the second, and SAR 39.37 million for the third.
By executing the sale at nearly SAR 240 million, the company stands to realize a substantial gain over the carrying amount of the assets.
The primary objective behind this transaction is the continued execution of the Masar Destination development strategy. The buyer is expected to utilize the plots for the construction of three residential towers, contributing to the urban density and service offerings of the destination.
Umm Al Qura has indicated that the proceeds from the sale will be strategically deployed to fund working capital requirements and support ongoing projects within its portfolio.
The company expects the transaction to have a positive impact on its liquidity position and overall financial results. While the formal agreement date is listed as 18 June, the disclosure confirms that there are no related parties involved in the deal and no specific conditions were attached to the transaction beyond standard commercial terms.
