Saudi-listed state-owned enterprise Riyadh Development Company (ARDCO) signed an agreement with Riyadh Holding Company to establish a joint venture to develop and operate the markets in the Qasr Al-Hukm area, located in the centre of Saudi capital Riyadh.

The partnership involves combining their assets, which include Al-Taamir Markets, Al-Muaiqiliyah Centre, and Al-Dira Markets, together valued at approximately 1.52 billion Saudi riyals ($405 million), ARDCO said in statement filed with Tadawul.

Each company will contribute a portion of their assets to the venture, with Riyadh Development Company contributing 46.34 percent through the Al-Taamir Wholesale Commercial Centre, while Riyadh Holding Company will contribute 53.66 percent through Al-Muaiqiliyah Commercial Centre and Al-Dira Market.

ARDCO said the agreement reflects the company’s strategy to form partnerships that support financial stability, increase operational efficiency, generate new investment opportunities and improve the returns on its asset portfolio, and focus on real estate development and property management.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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