Alsaif Gallery sells commercial building in Riyadh for SAR 97M, logs SAR 43M capital gain

AlSaif Stores for Development and Investment Co. (Alsaif Gallery) sold a commercial building located in Al-Arid District, Riyadh, for SAR 97 million.

In a statement to Tadawul today, Dec. 29, the company said the building spans an area of 4,150.5 square meters.

Under the sale deal, the lease agreement for the Alsaif Gallery branch will remain in effect for 20 years, starting from Jan. 1, 2025.

The company revealed that the book value of the asset is SAR 53.8 million, expecting to achieve a capital gain of SAR 43 million during Q4 2024.

The purpose of the sale is to enhance the company’s financial performance by focusing on its core operations and developing complementary activities aligned with its strategy.

The sales proceeds will be directed towards strengthening the company’s financial position and supporting its future plans.

Alsaif Gallery highlighted that there are related parties to the deal, specifically Chairman Suleiman AlSaif.

The company also confirmed obtaining two independent valuations for the building, with the highest valuation being SAR 87.19 million.

During its meeting on Dec. 28, the audit committee recommended approving the highest offer of SAR 97 million for the deal which involves a related party. This proposal was subsequently presented to the board of directors and gained the board members’ unanimous approval.