Makkah Construction acquires 30% stake in First Avenue for $90.93mln

PHOTO

Riyadh – Makkah Construction and Development Company entered into share purchase agreements with 57 shareholders of First Avenue Real Estate Development Company on 27 August 2024.

The Tadawul-listed company purchased 56.81 million shares in First Avenue, representing 30.13% of the latter’s shares, at a total value of SAR 340.88 million, according to a bourse disclosure.

The deals include an obligation to take necessary actions to complete the initial public offering (IPO) of First Avenue and to obtain the necessary approvals for publishing the supplementary prospectus related to the transaction.

Makkah Construction expected that the transaction would positively contribute to the growth of the company's investment portfolio, building strong relationships with a promising real estate developer.

In the first half (H1) of 2024, the company recorded 36.89% higher net profits at SAR 256 million, compared to SAR 192 million in H1-23.