14 Muharram 1446 - 20 July 2024
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Eye of Dubai
Business & Money | Wednesday 10 July, 2024 7:44 am |

Al Othaim renews 2 contracts worth SAR 423M with GOSI

Abdullah Al Othaim Markets Co. (Al Othaim) signed two contracts worth SAR 422.71 million with the General Organization for Social Insurance (GOSI) to renew lease agreements for the latter’s two properties in Dammam.


In two separate statements to Tadawul, the company said these contracts involve renewing leases for two parcels of land: one housing a commercial complex valued at SAR 331.54 million and the other housing commercial halls valued at SAR 91.17 million.


These contracts were initially signed for 25 Hijri years and are scheduled to expire on June 8, 2028.


The new contracts will take effect upon the expiration of the current ones, starting from June 9, 2028, and will be valid for 15 years. The land area for the first property is 50,440 square meters (sqm), while the second property covers 49,780 sqm.


The annual rental fees for the first and second properties are SAR 20 million and SAR 5.5 million, respectively, with a compounded increase of 5% every three years.


Al Othaim said that these contracts will have a positive financial impact on its results, with the effects expected to be realized from the effective date of the new contracts.


These transactions are subject to approval by the company's shareholders in accordance with applicable regulations, due to the involvement of a related party, board member Bandar Al-Tamimi, the statement added.


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