According to a bourse filing, Abdullah Al Othaim Markets Company signed a SAR 331.53 million lease agreement with the General Organization for Social Insurance to lease land in Dammam.
The agreement, signed on July 8, 2022, pertains to extending the organization’s land lease for 25 years, ending on June 8, 2028.
In the interim, the new contract will take effect on June 9, 2028, and last for 15 years after the current one expires.
The 50,436 square meters of leased land has an annual rental value of SAR 20 million, with compound annual increases of 5% occurring every three years.
Othaim Markets anticipated that its financial results would improve as of the project’s effective date.
The listed company reported 2.98% lower net profits in the first quarter (Q1) of 2024 at SAR 116.43 million as opposed to SAR 120.01 million in Q1-23.
