Savola to buy $35m Jeddah tower for new HQ
Jeddah, April 26, 2012
The Savola Group has signed a contract with Adeem National Construction to purchase the East Tower of The Headquarters Business Park in Jeddah for SR134 million ($35.7 million) for its new headquarters.
The Business Park project consists of two towers, East and West. The Savola Group headquarters will be situated in the East Tower facing Prince Faisal bin Fahad Street and consists of sixteen floors, including the ground floor, with a total area of 13,404 sq m, not including some common areas.
The total cost of the purchase is to be paid in three installments. The first installment of 60 per cent represents what has been constructed to date and is payable on signing.
The remaining two installments of 20 per cent each will be paid according to the stages of deliverables as per the contract.
The East Tower will be handed over to the Savola Group by the end of May 2013 and at that point of time the ownership will be transferred to The Savola Group. The purchase will be self-financed.
Dr Abdulraouf M Mannaa, managing director of the Savola Group, said that this project will unify the Group’s corporate headquarters and its operating companies offices, reduce costs of administrative expenses and rent, enhance management of processes and effectively foster team-work.
Any remaining space in the East Tower will be as an investment for the Group, he added. – TradeArabia News Service
More Construction & Real Estate Stories
- IPIC to use $4bn pipeline payment to repay debt
- MMG appoints advisor for debt restructuring
- Dar Al Arkan to sell benchmark-sized sukuk
- Bahrain plans $52m spend on infrastructure
- Bahrain launches massive homes revamp
- Arabtec workers stage rare strike
- Schneider Electric unveils new solar products
- Big demand for housing projects at KAEC
- Bahrain real estate prices slump
- Staff shortage hits Bahrain projects