Saudi-based Makkah Construction and Development Company has announced that it has entered into a deal with 57 shareholders of First Avenue Real Estate Development Company to buy a strategic 30.13% stake in the company for a total value of SAR341 million ($91 million).

The agreements with the principal shareholder of First Avenue Nader bin Hassan bin Atallah Al Amri, Dar Al Majed Real Estate Company and First Avenue include an obligation on them 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, and also include a restriction on the disposal of shares for the principal shareholder, said Makkah Construction in its filing to the Saudi bourse Tadawul.

Under this, Makkah Construction acquired a total of 56.8 million ordinary shares of First Avenue.

The entire transaction was funded through the company’s internal resources and existing facilities.

A major player in Saudi property sector, First Avenue Real Estate is currently developing a rnage of projects, most notably Jadat Al-Diriyah, Business Avenue 1, Business Avenue 2, Business Avenue 3, La Perle East, La Perle West and Jadat Al-Nakhil. Its portfolio also includes projects in cooperation with leading financial instructions through establishing different real estate funds.-TradeArabia News Service

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