A.OTHAIM MARKET

09 July, 2024 09:24

Abdullah Al Othaim Markets Company announces the signing of a contract with the General Organization for Social Insurance to lease a land in the city of Dammam-KSA.

Element ListExplanation
Introduction Abdullah Al Othaim Markets Company “the Company” announces the signing of a contract with the General Organization for Social Insurance “the Organization” to lease a land owned by the Corporation located in the city of Dammam.
Date of Announcement of the Award 2024-07-08 Corresponding to 1446-01-02
Contract Subject Matter Lease of land on which a commercial shopping mall is built
The Entity with Which the Contract was Signed General Organization for Social Insurance
Date of Signing the Contract 2024-07-08 Corresponding to 1446-01-02
Contract Value SR (331,537,879) Three hundred and thirty-one million, five hundred and thirty-seven thousand, eight hundred and seventy-nine riyals (excluding VAT).
Contract Details 1) A renewal of the land lease contract on which a commercial shopping mall is built in Dammam City entered into previously between the Company and the Organization for a period of (25) years Hijri which will expires on 08/06/2028. 2) The new contract will be effective after the expiration of the current contract, starting on 09/06/2028, for a period of (15) years. 3) The leased land area is 50,436 fifty thousand, four hundred and thirty-six square meters. 4) The annual rental value is SR (20,000,000) twenty million riyals, in addition to a compounded increase of 5% every three years.
Contract Duration 15 Years.
Financial Impact and the Relevant Period The financial impact of this contract will be positive on the Company’s results, and it is expected that the financial impact of the contract will be reflected starting as of its effective date .
Related Parties Member of the Board of Directors Mr. Bandar Nasser Hamad Al Tamimi.
Additional Information This transaction will be presented to the general assembly of the company’s shareholders for approval in accordance with the applicable regulations due to the presence of a related party.

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