Riyadh Development Company acquires real estate assets through capital increase
(MENAFN) Riyadh Development Company, listed on the Saudi Stock Exchange (Tadawul), has announced a major transaction involving the acquisition of two significant Real estate assets valued at 1.404 billion riyals. This deal will be executed through a capital increase and the issuance of new shares to Remat Development Company, the seller of the properties. The assets include two large plots of land in Riyadh, with one covering 787,000 square meters and the other 214,000 square meters, enhancing Riyadh Development Company's land holdings substantially.
Following this acquisition, Riyadh Development Company will increase its capital by 31.6 percent, elevating it from 1.778 billion riyals to 2.339 billion riyals. The capital infusion will result in the issuance of new shares, which will decrease the ownership stake of existing shareholders from 100 percent to 76 percent. This strategic financial maneuver underscores the company's commitment to expanding its real estate portfolio and strengthening its market position through substantial new investments.
The acquisition and capital increase are part of Riyadh Development Company’s broader strategy to bolster its presence in the real estate sector. By integrating these new assets into its portfolio, the company aims to enhance its operational capabilities and market competitiveness, positioning itself for future growth and development in the Saudi real estate market.
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