| Element List | Explanation |
|---|---|
| Introduction | The Knowledge Economic City announces the signing of a Sale and Purchase Agreement for two land plots, numbered (C06-6) and (C06-3), located within the Knowledge Economic City masterplan in Madinah, with a total land area of 17,624.85 square meters, with Al Bawaba International Investment Company and Olu Real Estate Company. The plots will be developed as a mixed-use project through the establishment of a private real estate investment fund. |
| Transaction Details | Knowledge Economic City has signed a Sale and Purchase Agreement for two land plots, numbered (C06-6) and (C06-3), located within the Knowledge Economic City masterplan in Madinah, with a total land area of 17,624.85 square meters, with Al Bawaba International Investment Company and Olu Real Estate Company. The plots will be developed as a mixed-use project through the establishment of a private real estate investment fund. |
| Transaction Amount | The total net transaction value amounts to SAR 229,123,050 (SR Two Hundred Twenty-Nine Million One Hundred Twenty-Three Thousand Fifty), excluding Real Estate Transaction Tax (RETT), property registration fees, and any other applicable governmental fees. |
| Transaction Conditions | Not applicable. |
| Parties of the Transaction | Seller: Knowledge Economic City Company Buyers: Al Bawaba International Investment Company (50%) and Olu Real Estate Company (50%). |
| Transaction Financing Method | Not applicable. |
| Date of Entering Into The Transaction | 2026-07-16 Corresponding to 1448-02-02 |
| Description of Activity of The Asset Subject of The Transaction | Not applicable. |
| Asset Book Value | The book value of the land plots in the Company's records is SAR 21,606,022.82 |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | Not applicable. |
| Transaction reasons | This transaction is part of Knowledge Economic City's strategy to maximize the value of its approximately 6.8 million square meter land portfolio through direct development, partnerships with specialized investors and developers, or investment fund structures, thereby accelerating project development and enhancing capital efficiency. The transaction represents one of the development models adopted by the Company to unlock the value of its assets through collaboration with specialized investment firms and financial institutions, supporting the attraction of high-quality investments and promoting urban development within Knowledge Economic City. The Company expects the transaction to enhance its liquidity, strengthen its financial position, enable the reinvestment of capital into its current and future strategic projects, and accelerate the development of one of the strategic land plots within Knowledge Economic City, thereby supporting sustainable growth and creating additional value for shareholders. |
| Expected Impact of the Transaction on the Company and Its Operations | The Company expects to realize a gross profit of SAR 207,517,027.18 from the transaction before deducting any transaction-related expenses, fees, or obligations. The financial impact will be recognized in the Company's financial statements in accordance with the International Financial Reporting Standards (IFRS) upon satisfying the applicable accounting recognition criteria and completion of the title transfer procedures. |
| Details of Using The Proceeds of the Asset Sale | The proceeds will be used to enhance the Company's liquidity, strengthen its financial position, and redeploy capital into its current strategic projects to support sustainable growth and maximize shareholder value. |
| Related Parties | There are no related parties to the transaction. |
Knowledge Economic City Announces the Sale of Two Land Plots within its Masterplan in Madinah
AI Summary
- Knowledge Economic City signed a Sale and Purchase Agreement on July 16, 2026, to sell two land plots in Madinah for a total net value of SAR 229,123,050 to Al Bawaba International Investment Company and Olu Real Estate Company.
- The transaction involves 17,624.85 square meters of land with a book value of SAR 21.6 million, and is expected to generate a gross profit of approximately SAR 207.5 million before expenses and fees.
- The plots will be developed as a mixed-use project through a private real estate investment fund, with sale proceeds used to enhance liquidity and reinvest in strategic projects.
