Sunday 15 September 2019

Tabia to buy major stake in Saudi real estate group

RIYADH, March 14, 2019

Saudi-based Tabia Holding Company said it has won approval from the kingdom's Capital Market Authority (CMA) to increase its capital from SR1.5 billion to SR1.6 billion ($399 million to $426 million) for its major expansion moves.

These funds will be used for acquiring all the shares of the minority shareholders in Al Aqeeq Real Estate Development Company (totalling 8.10 per cent) besides a strategic 12.65 per cent stake in Arab Resort Areas Company (ARAC),  stated Tabia Holding Company in its filing to the Saudi bourse Tadawul.

Al Aqeeq Real Estate Development Company is one of the leading real estate companies in the kingdom with interests in several fields including project development, sale and renting of buildings besides managing, operating and maintaining residential and commercial centres, hotels, and furnished apartments.

It is also involved in general contracts for construction of buildings, roads and bridges.

ARAC operates a group of hotels and resorts located in the most attractive areas in Saudi Arabia, such as ARAC Taiba Suites Tower in Madinah and ARAC Al Ula Resort in the historical area of Madaen Saleh.

Recently, the company had purchased 8,759.43 sq m of land on Al Andalus Road in Jeddah and is planning to build a five-star hotel and serviced apartments.

Tabia said the capital boost will be done through issuing of a total of 10.4 million ordinary shares.-TradeArabia News Service


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