Riyadh – Mubasher: Emaar Al Waseel Al Mutamayiza, a subsidiary of Banan Real Estate Company, signed a development and lease agreement on 5 September with Armah Sports for a sports club project in Riyadh.
The contract carries a total value of SAR 110.40 million, excluding value-added tax, and spans a binding duration of 20 years.
Under the terms of the agreement, the subsidiary will develop a fully equipped sports club on its land in the Al Qairawan district of Riyadh.
Armah Sports will lease the facility upon completion for an annual rental value of SAR 5.52 million. The project is expected to be completed within 24 months.
Banan Real Estate, which holds a 60% stake in Emaar Al Waseel Al Mutamayiza, expects to generate rental income following the project's completion. The company also anticipates direct revenue resulting from its role in the development works.
The lease term will officially commence once the club is delivered in a ready-to-operate condition, excluding mobile furniture and sports equipment. No related parties were identified in the transaction.
Last August, the subsidiary acquired a raw land plot in Riyadh for a total value of SAR 43.43 million.
