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|14 March, 2019

Saudi-based Taiba to buy major stake in real estate group

Company to acquire all the shares of the minority shareholders in Al Aqeeq Read Estate Development Company besides a strategic 12.65% stake in Arab Resort Areas Company

Image used for illustrative purpose. A broker monitors stock prices on a screen at the Saudi Investment Bank in Riyadh September 5, 2013.

Image used for illustrative purpose. A broker monitors stock prices on a screen at the Saudi Investment Bank in Riyadh September 5, 2013.

REUTERS/Faisal Al Nasser

Saudi-based Taiba Holding Company said it has won approval from the kingdom's Capital Market Authority (CMA) to increase its capital from SR1.5 billion to SR1.6 billion ($399 million to $426 million) for its major expansion moves.

These funds will be used for acquiring all the shares of the minority shareholders in Al Aqeeq Read Estate Development Company (totalling 8.10 per cent) besides a strategic 12.65 per cent stake in Arab Resort Areas Company (ARAC), stated Taiba Holding Company in its filing to the Saudi bourse Tadawul.

Al Aqeeq Real Estate Development Company is one of the leading real estate companies in the kingdom with interests in several fields including project development, sale and renting of buildings besides managing, operating and maintaining residential and commercial centers, hotels, and furnished apartments.

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It is also involved in general contracts for construction of buildings, roads and bridges.

Arab Resort Areas Company (ARAC) operates a group of hotels and resorts located in the most attractive areas in Saudi Arabia, such as ARAC Taiba Suites Tower in Madinah and ARAC Al Ula Resort in the historical area of Madaen Saleh.

Recently the company had purchased 8,759.43 sq m of land on Al Andalus Road in Jeddah and is planning to build a 5-star hotel and serviced apartments.

Taiba said the capital boost will be done through issuing of a total of 10.4 million ordinary shares.-TradeArabia News Service

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