One of Saudi Arabia’s largest-listed developer, Jabal Omar Development Company, has sold a parcel of land within its Mecca development project for 517.46 million riyals ($138 million), a bourse filing said on Thursday. 

The proceeds of the transaction, done via a public auction, will be used to restructure the developer’s financial obligations and complete the ongoing project.  

Jabal Omar is developing a complex in Makkah, also known as Mecca, which is expected to feature 40 towers once fully completed. The site is envisioned to attract 100,000 visitors during the haj season. 

Plot sale 

The recently sold plot, priced at 199,000 riyals per square metre, has a total area of 2,000 square metres. It has been infrastructure-enabled and fully developed, and is located close to the Grand Mosque. 

“The deal is expected to have a positive impact on the company’s financial results after the completion of the process of land deed’s transfer,” Jabal Omar Development told the Saudi Stock Exchange (Tadawul). 

“The sale proceeds will be used to complete the construction work of the outstanding phases of [the] project and to repay part of the syndicated loan.” 

Early this year, the developer secured 1.6 billion riyals in loans from Banque Saudi Fransi. The company incurred net losses of 74.7 million riyals in the first half of 2021, down 89 percent from the 691.3 million riyals in losses recorded in the same period last year. 

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

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