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Saudi Arabia's Jabal Omar Development Co.(JODC), the developer behind the mega mixed-used project in Makkah, said it has agreed to sell of plot of land it owns in Makkah for 521.2 million riyals ($138.9 million) to Areeb Advanced Real Estate Company.
The asset book value, including development value, is SAR 130.74 million, JODC, one of the largest listed developers in the kingdom, said in a regulatory disclosure on Riyadh's Tadawul exchange on Thursday.
The Jabal Omar master plan consists of several phases, with a land area of over 235,000 square metres (sqm) and a built-up area of over 2.5 million sqm with a total of 46 towers which include hospitality, commercial and residential developments.
JODC said it is selling the plot as part of financial restructuring. The proceeds from the sale will be used to complete the construction works on the project.
As part of its financial restructuring, JODC last year issued 225 million ordinary shares to unit holders of Alinma Makkah Real Estate Fund in exchange for settling SAR 5.3 billion worth of debt.
In 2021, JODC received the finance ministry’s approval to restructure an existing SAR 3 billion Murabaha loan facility from the government.
(Reporting by Brinda Darasha; editing by Seban Scaria)
