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Announcement of Riyadh Development Company Regarding Exit from Investment in "Associate Company" — Tanal for Development and Real Estate Investment
| Element List | Explanation |
|---|---|
| Introduction | With reference to the announcement by Riyadh Development Company published on the Saudi Stock Exchange (Tadawul) website on 21-10-1440H (corresponding to 24-06-2019) regarding its partnership with Sumou Holding Company (owner of Adeer Real Estate) to establish Tanal for Development and Real Estate Investment (a limited liability company) with a capital of SAR 100,000, where Riyadh Development Company held a 69.38% stake and Sumou Holding held 30.62%. These are the same ownership percentages in the Al Thumama land, which has an area of 3 million square meters. |
| Previous Announcement | Establishment of a limited liability company with Sumou Holding Company |
| Date of Previous Announcement on Saudi Exchange’s Website | 2019-06-24 Corresponding to 1440-10-21 |
| Hyperlink to the Previous Announcement on the Saudi Exchange Website | Click Here |
| Latest Developments Of The Announced Event | Riyadh Development Company announces its exit from investment in associate company Tanal for Development and Real Estate Investment (LLC) after completing the sale of all land inventory. This was done by signing a waiver agreement for its entire shareholding in the capital (69.38%)—including rights and obligations—in favor of its partner in Tanal, "Sumou Holding Company". In return, Riyadh Development company received its share of Tanal’s capital (SAR 69,380) and its share of statutory reserves (SAR 20,814), based on Tanal’s financial statements for the year ending December 31, 2024. It is noted that there is no material financial impact on Riyadh Development Company’s financial statements. It is worth noting that Riyadh Development Company participated in establishing Tanal in 2019 as a Special Purpose Vehicle to invest in infrastructure development of a plot in Al Rimal district in Riyadh, covering 3 million sqm. From this investment, Riyadh Development Company achieved profits estimated at SAR 819 million, equivalent to an Internal Rate of Return (IRR) of 14% and an Annual Return on Investment (ROI) of 18%. Also noteworthy is that board member Mr. Abdulrahman Ayed Farhan Al-Qahtani is also a board member of Sumou Holding Company. It’s also worth mentioning that at the beginning of 2023, the company launched its strategy “We Invest for Growth,” which, by the grace of God, led to signing investment agreements exceeding SAR 9 billion. These will contribute to enhancing total shareholder returns and reinforcing the company's role as a leading real estate developer and project manager. |
| The costs associated with the event, and if they have changed or not with indication of the reasons. | Not applicable |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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