Saudi Arabia.. “First Avenue” shares rose 5.23% after an agreement to sell land and a commercial complex

The shares of First Avenue Real Estate Development Company, listed on the parallel Saudi stock market “Nomu,” rose by 5.23% at the beginning of Saudi market trading today, Sunday, to trade at a price of 9.05 riyals per share, after it signed a contract to sell land and a commercial building for 125.96 million riyals.

Trading in First Avenue Real Estate Development Company shares at that time amounted to 16.13 thousand shares, with a trading value of 146.98 thousand riyals.

The highest share price at that time was 9.46 riyals per share during the session, while the lowest share price was 8.71 riyals per share.

The shares of First Avenue Real Estate Development Company witnessed a noticeable increase after it announced last Thursday the signing of a sale agreement for land and an office commercial complex with La Perle Real Estate Fund, with a total value of 125.96 million riyals.

The company disclosed in an official statement that the duration of the agreement is 30 days, noting that the deal includes the sale of a plot of land owned by the company with an area of ​​2,747 square meters located in the Al-Shati neighborhood in Jeddah, provided that payment is made through the issuance of investment units in the fund equivalent to the value agreed upon after completion. Of the required legal procedures.

The company also added that the deal also includes the sale of the “La Perle Western” project, which the company owns, which is a six-story office building in addition to commercial units that include various restaurants and cafes with a total area of ​​2,743 square meters in the Al-Shati neighborhood in Jeddah, to be completed. Payment can also be made through issuing investment units in the fund equivalent to the agreed-upon value after completing the regulatory procedures.

The company indicated that this deal will lead to achieving capital gains estimated at approximately 19.5 million riyals, the financial impact of which will be recorded in 2025, stressing that there are no related parties in this process.

She explained that the deal will contribute to enhancing the company’s investments by participating in establishing a real estate development fund, as previously announced, with the company undertaking the implementation of the fund’s projects, and it is expected that the fund will include additional investments in line with the company’s development objectives.

She added that the fund will target investment in four real estate projects, including the western La Perle area, the eastern La Perle area, in addition to the La Perle residential land and the La Perle hotel land.

In a separate context, the company announced via the “Tadawul” platform that it had signed a real estate brokerage agreement with Sarh Al-Lulu’a Real Estate Company, with a total value of 57 million riyals, excluding value-added tax.

She indicated that the duration of the contract is 30 days, and mediation fees will be due upon signing the contract and completing the offloading process, with expectations of achieving positive financial returns for the company by 2025.

The company also confirmed that the aim of this deal is to enhance its real estate brokerage activity, while emphasizing that there are no parties related to the deal.