JAZADCO sells an office building for BATIC for SAR 33.5 mln

Jazan Energy and Development Co. (JAZADCO) has sold an office building in Riyadh to BATIC Investment and Logistics Co. for SAR 33.5 million, the company said in a bourse filing.

The building which is built on an area of 1,632 square meters consists of five floors in addition to a ground floor and a basement with a total area of 7,426.75 square meters.

The property has a book value of SAR 33.23 million while it generated a net rent income of SAR 7.5 million during the last three years.

The sale proceeds will go towards financing other higher income generating projects, the statement added.

The financial impact of the deal will be reflected on financial statements of Q1 2019.

The deal is a related party transaction as JAZADCO’s chairman, deputy chairman and some board members hold similar positions at BATIC.