Barwa Real Estate Company Q.P.S.C. announced the extension of the Sale Agreement to sell the land plot owned by Wahat Al-Riyadh Real Estate Company, "wholly owned by Barwa Group", for additional 50 days. The Agreement shall be extended and all its terms and conditions shall remain in full force and effect, provided that the sale process is completed and registered with the notary upon fulfilling all the terms and conditions of the agreement and paying the rest of the sale price within a period not exceeding 50 days from the date of signing the sale agreement extension. Wahat Al-Riyadh Real Estate Company received an amount of SAR 30 million as a deposit for sale.
As previously announced, the total sale price is SAR 742,380,100 (seven hundred and forty-two million, three hundred and eighty thousand and one hundred Saudi riyals), excluding real estate transfer tax. The aforementioned land was purchased in 2016 for a value of SAR 659,277,850, along with other amounts spent on land development as well as financing costs.
As previously announced, all financial terms of the agreement, its financial impact and the estimated amounts of profits generated from the sale transaction will be announced after the sale is completed and the land is evacuated for the buyer. This will allow the company to precisely calculate all costs and expenses related to the land.
It should be noted that there is no conflict of interest between the contracting parties and that the extension of the contract term has no impact on the company's financial statements.
