Umm Al Qura for Development and Construction, the Saudi-listed developer of the Masar Destination in Makkah, has agreed to sell a plot of land in the project for SR138.98 million, according to a filing on the Saudi Exchange on Monday.
The 3,217-square-meter plot sits in the third zone of Masar Destination and overlooks Abdullah Arif Road, the company said.
The seller is Alinma Tatweer Second Co., a special-purpose vehicle of the Alinma Makkah Development Fund II, which Umm Al Qura wholly owns. The buyer is Al Sakan Al Mithali for Development Co., a subsidiary of Methak Investment Holding Co.
The buyer plans to develop a hospitality tower on the site, according to the filing.
The plot has a book value of SR59.66 million. The sale price excludes taxes and fees, which the buyer will pay.
Umm Al Qura said the deal would have a positive effect on its cash position and financial results. It plans to use the proceeds for working capital and to fund ongoing projects in the destination.
The agreement was signed on Oct. 25. The company said no related parties were involved in the transaction.
Masar Destination is a mixed-use urban development in Makkah, the city that is home to Islam’s holiest site and receives millions of pilgrims each year.
