Enma AlRawabi sells SAR 61.3M commercial building in Riyadh, makes SAR 20.9M profit

Logo of Enma AlRawabi Co.

Enma AlRawabi Co. announced the sale of a commercial building on the commercial strip in Al-Sahafa District, Riyadh, spanning an area of 2,500 square meters, to Al Mahmal Investment Co., in a SAR 61.25 million deal, according to a statement to Tadawul today, May 6.

The deal is expected to have a positive impact on Enma AlRawabi’s financial results after the completion of the evacuation process, generating capital gains estimated at SAR 20.94 million, or 51.94% of the cost of purchasing the property. The property's book value amounted to SAR 40.31 million.

The property subject to the transaction had been leased to the Saudi Post under an annual contract worth SAR 1.2 million. It was then purchased on March 7, 2023. Enma AlRawabi's share of the rent was collected, valued at SAR 1 million, the statement added.

The company also said the deal’s proceeds will go to strengthening its financial position and promoting future growth plans, with no related parties.

It also indicated that the purpose of the sale is the early exit with high and fast capital gains.