Saudi: Othaim Markets pens $88.4mln lease agreement

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Riyadh – Abdullah Al Othaim Markets Company inked a SAR 331.53 million contract with the General Organization for Social Insurance to lease land in Dammam, according to a bourse filing.

The deal, which was signed on 8 July 202, covers the renewal of the land lease contract with the organization for 25 years that will expire on 8 June 2028.

Meanwhile, the new agreement will be effective after the expiration of the current contract, starting on 9 June 2028 for 15 years.

The leased land area is 50,436 square metres, while the annual rental value is SAR 20 million in addition to a compounded increase of 5% every three years.

Othaim Markets expected that the project will reflect positively on its financial results starting as of its effective date.

In the first quarter (Q1) of 2024, the listed firm recorded 2.98% lower net profits at SAR 116.43 million, compared to SAR 120.01 million in Q1-23.