Al Hammadi Holding Announces an update on Purchasing of a land in the amount of 171,374,910 Saudi Riyals, excluding real estate tax and commission fees.

Element List	Explanation
Introduction	With reference to the Company's announcement published on the Saudi Exchange (Tadawul) website on 05/11/2024G regarding the acquisition of a plot of land located in the northeastern part of Riyadh (Al Munsiyah District), at the intersection of Sheikh Jaber Al-Sabah Road and Al Thumamah Road (Al Takhassusi), with a total area of 24,482.13 square meters and a total value of SAR 171,374,910 excluding real estate tax and commission fees, for the purpose of constructing a hospital. The Company would like to announce that it has received notifications and cadastral decisions from the Royal Commission for Riyadh City regarding financial compensation in accordance with the Real Estate Expropriation for Public Benefit Law issued under Royal Decree No. (M/15), as a result of a portion of the property being affected by the Riyadh Ring Roads and Main Roads Development Project. It should be noted that the carrying cost of land as recorded in the Company’s books at SAR 184,245,851 after the capitalization of real estate tax and commission fees.
Previous Announcement	Purchasing of a land in the amount of 171,374,910 Saudi Riyals, excluding real estate tax and commission fees.
Date of Previous Announcement on Saudi Exchange’s Website	2024-11-05 Corresponding to 1446-05-03
Hyperlink to the Previous Announcement on the Saudi Exchange Website	Click Here
Latest Developments Of The Announced Event	The Company would like to announce that it has received notifications and cadastral decisions from the Royal Commission for Riyadh City regarding financial compensation in accordance with the Real Estate Expropriation for Public Benefit Law issued under Royal Decree No. (M/15), as a result of a portion of the property being affected by the Riyadh Ring Roads and Main Roads Development Project. The expropriated area amounted to 9,669 square meters, with compensation totaling SAR 79,757,543, resulting in a non-recurring gain amounting SAR 6,995,042. The Company will review the engineering and regulatory studies and plans required in light of the changes resulting from the expropriation of part of the land, and any material developments or impacts on the project timeline will be announced in due course.
The costs associated with the event, and if they have changed or not with indication of the reasons.	The carrying cost of the expropriated portion of the land amounted to SAR 72,762,501, while the compensation receivable amounted to SAR 79,757,543, resulting in a non-recurring gain amounting SAR 6,995,042. The financial impact will be recognized in the Company’s financial statements in accordance with the applicable international financial reporting standards. In addition, the Company is currently assessing the engineering and regulatory implications arising from the expropriation of part of the land. Should there be any material impact on the project cost or timeline, the Company will disclose such impact in due course.