Arabian Centres nods SAR 2 bln non-core assets sale, sells first for SAR 230.5 mln

Logo of Arabian Centres Co.

Arabian Centres Co.'s board of directors approved selling non-core assets whose book value reaches SAR 1.2 billion and market value is estimated at more than SAR 2 billion.

In a statement, of which Argaam obtained a copy, the company said it completed the first sale, represented in a vacant land plot​​ spanning 17,730 square meters (sqm) in Olaya district, Riyadh.

The company agreed to sell the land at SAR 13,000 per sqm, bringing the total sale value to SAR 230.5 million, with a total profit of SAR 75.5 million.

The deal will reflect positively on the company's financial results for Q2 2023.

Arabian Centres decided to sell some non-core assets as studies showed that they are more suitable for residential and office development projects, and do not support the company's strategic expansion plans that are focused on developing modern destinations as per the highest international standards.

The sale will help strengthen the company's financial position and promote growth plans, the statement added.