To create a company that owns the assets and serves as the primary developer and operator of the markets in the Qasr Al-Hukm area, Riyadh Development Company and Riyadh Holding Company have signed an agreement.
A filing with the Saudi Exchange states that the assets are valued at SAR1.521 billion ($405.37 million) in total.
Through this partnership, the two companies’ established, managed, and developed commercial and service real estate projects will be leveraged. These resources can be found on the properties that the two businesses own in the heart of Riyadh, namely Al-Taamir Markets, Al-Muaiqiliyah Center, and Al-Dira Markets.
While Riyadh Holding Company’s contribution to Al-Muaiqiliyah Commercial Center and Al-Dira Market is estimated to be 53.66% of the partnership, Riyadh Development Company’s in-kind contribution to Al-Taamir Wholesale Commercial Center represents 46.34% of the partnership.
According to the filing, the agreement is in line with Riyadh Development Company’s strategy and its desire to form cooperative alliances that will help it attain financial sustainability and improve operational and real estate management efficiency.
The agreement also aims to establish qualitative partnerships that maximize the total return for shareholders and open up investment opportunities that improve the return on the asset portfolio, allowing the parties to concentrate on real estate development and property management operations, it continued.
